The retraction feature:
A)protects the issuer from interest-rate risk.
B)allows the shareholder to sell it to the issuer at an early maturity date.
C)allows the issuer to buy it back from the shareholder at an early maturity date.
D)protects both the shareholder and the issuer regardless of interest rates.

Question

Quizplus · Accepted Answer

The retraction feature allows the shareholder to sell the security back to the issuer at a predetermined price before maturity, providing the shareholder with an option to exit early.

The Retraction Feature