Right held with corporations to call issued bonds for redemption is considered as___________?
Correct answer: B. Call provision
- A. Artificial provision
- B. Call provision
- C. Redeem provision
- D. Original provision
Explanation
A call provision gives the issuing corporation the right to redeem a bond before its maturity date. It is an embedded feature of the bond contract, not a general redemption label.
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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.
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