Bonds that contain a provision that allows the issuing corporation to buy back the bonds prior to the maturity date are called
A)secured bonds.
B)callable bonds.
C)convertible bonds.
D)debenture bonds.

Question

Quizplus · Accepted Answer

Bonds that contain a provision allowing the issuing corporation to buy back the bonds prior to the maturity date are called callable bonds. The corporation may exercise this option when interest rates in the market have fallen, allowing them to reissue the bonds at a lower rate.

Bonds That Contain a Provision That Allows the Issuing Corporation