Call provisions are included in the bond indenture.

Call Provisions

Terms in a bond contract that allow the issuer to repurchase and retire the bond at a specified price before maturity, protecting against interest rate risk.

Bond Indenture

A legal contract between a bond issuer and a bondholder, detailing the terms of the bond such as the coupon rate, maturity date, and obligations of the issuer.

Fathom the parts and goals of bond indentures, with a focus on sinking funds and call provisions.

Verified Answer

Kaykay Crockett CrockettJul 23, 2024

Final Answer :

True

Explanation :

Call provisions are terms included in the bond indenture that allow the issuer to repurchase or "call" the bond before its maturity date, typically at a premium over the face value.

Learning Objectives

Fathom the parts and goals of bond indentures, with a focus on sinking funds and call provisions.

Call provisions are included in the bond indenture.

Definitions

Learning Objectives

Learning Objectives

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