Which of the following describes a callable bond?
A)Can be called for early retirement at the option of the issuer
B)Can be called for early retirement at the option of the bondholder
C)Convertible to common stock at the option of the bondholder
D)convertible to common stock at the option of the issuer

Question

Quizplus · Accepted Answer

Callable bonds allow the issuing company to redeem (pay off)the bond debt before the maturity date.This is at the option of the issuer (rather than the bondholder).

Which of the Following Describes a Callable Bond