A feature that gives the issuer the opportunity to repurchase bonds at a stated price prior to maturity is called

Question

Quizplus · Accepted Answer

The feature described is known as a call feature, which allows the issuer to redeem or repurchase the bonds at a specified price prior to their maturity. A stock purchase warrant is a separate security that gives the holder the right to purchase company stock at a specific price. A conversion feature allows a bondholder to convert their bonds into stock at a predetermined ratio. Therefore, the correct answer is B.

A Feature That Gives the Issuer the Opportunity to Repurchase