SIE practice questioneasyCallable/Putable Bonds
What feature allows a bond issuer to redeem the bonds before maturity?
- AConversion feature
- BPut provision
- CCall provision✓ Correct answer
- DSinking fund
Explanation
Why C — Call provision
A call provision allows issuers to redeem the bond early. A put provision allows bondholders to redeem; conversion is for convertibles, and a sinking fund is for gradual repayment.
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