Bonds with deferred call have protection which is classified as__________?
Correct answer: D. Call protection
- A. Provision protection
- B. Provision protection
- C. Deferred protection
- D. Call protection
Explanation
A deferred call prevents the issuer from redeeming the bond during an initial period, providing call protection to investors. “Provision protection” is not the standard term.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
When price of bond is calculated below its par value, it is classified as___________?
Rate on debt that increases as soon market rises is classified as________?
Bonds that can be converted into shares of common stock are classified as_________?
Real risk-free interest rate in addition with an inflation premium is equal to_____________?
Stated value of bonds or face value is considered as_____________?
A bond whose price will rise above its face value is classified as________?