The refunding provision of an indenture allows bonds to be retired EXCEPT if
A) they are replaced with a lower coupon bond issue.
B) the remaining time to maturity is less than five years.
C) the remaining time to maturity is greater than five years.
D) the stated time period in the indenture has not passed.
E) the stated time period in the indenture has passed.

Question

Quizplus · Accepted Answer

A refunding provision allows bonds to be retired and replaced with a new bond issue, except if the new bond issue has a lower coupon rate.

The Refunding Provision of an Indenture Allows Bonds to Be