When a corporation has a right to redeem bonds in advance of the maturity date,the bond is considered a:
A)Convertible bond.
B)Callable bond.
C)Junk bond.
D)Debenture bond.

Question

Quizplus · Accepted Answer

When a corporation has the right to redeem bonds in advance of the maturity date, the bond is considered a callable bond. Callable bonds give the issuer the option to redeem the bond before its maturity date, usually at a premium price to the face value of the bond.

When a Corporation Has a Right to Redeem Bonds in Advance