Bonds that have an option giving the issuer the right to retire them at a stated dollar amount before maturity are known as:
A)Convertible bonds.
B)Sinking fund bonds.
C)Callable bonds.
D)Serial bonds.
E)Junk bonds.

Question

Quizplus · Accepted Answer

Callable bonds have an option that allows the issuer to call or retire the bonds before their maturity at a specified price, known as the call price. This gives the issuer flexibility in managing its debt and interest expense.

Bonds That Have an Option Giving the Issuer the Right