Which of the following features allows a borrower to redeem or repurchase a bond issue before its maturity date?

Question

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The call provision allows the issuer of the bond to redeem or repurchase it before its maturity date. Convertibility allows the holder to convert the bond into a specified number of shares of the issuer's common stock. Floating rate refers to the interest rate on the bond that changes over time based on a benchmark rate. The priority of claims refers to the order in which different classes of creditors are paid in the event of the issuer's default.

Which of the Following Features Allows a Borrower to Redeem