Asked by joban preet Thind on Jun 16, 2024
Verified
Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called
A) callable bonds.
B) early retirement bonds.
C) options.
D) debentures.
Callable Bonds
Bonds that can be redeemed by the issuer before their maturity date at a predefined call price.
Early Retirement
The act of retiring from one's occupation before the traditional retirement age, often with reduced benefits.
Maturity
The date on which a financial obligation, note, bond, or loan must be repaid in full or the final payment is due.
- Acquire knowledge of diverse bond categories, including term bonds, bonds that are secured and unsecured, along with callable and convertible bonds.
Verified Answer
SA
Salvador Ayala-MendozaJun 19, 2024
Final Answer :
A
Explanation :
Callable bonds can be retired by the issuer at a certain dollar amount prior to their maturity. Option C and D are not relevant to the definition of these types of bonds, and there is no commonly-known term for "early retirement bonds."
Learning Objectives
- Acquire knowledge of diverse bond categories, including term bonds, bonds that are secured and unsecured, along with callable and convertible bonds.