What is a call provision?
A) the periodic repurchasing of issued bonds through a sinking fund by the issuer
B) an option to the issuer to repurchase the bonds at a predetermined price
C) the option for the bondholder to convert each bond owned into a fixed number of shares of common stock
D) a clause in a bond contract that restricts the actions of the issuer that might harm the interests of the bondholders
E) a formal contract that specifies the firm's obligations to the bondholder
Correct Answer:
Verified
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