Bonds subject to a redemption provision, which permits the corporation to redeem, or pay off, all or a part of the issue before maturity at a specified redemption price are known as:

A) secured bonds.
B) income bonds.
C) callable bonds.
D) convertible bonds.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predetermined price.

Redemption Provision

A clause in a bond or other fixed-income security that allows the issuer to repurchase and retire its bonds before the maturity date.