Which of the following statements is FALSE regarding a call provision?
A) The issuer can repurchase a fraction of the outstanding bonds in the market or it can make a tender offer for the entire issue.
B) A call provision allows the issuer to repurchase the bonds at a predetermined price.
C) The call price is generally set at or below, and expressed as a percentage of, the bond's face value.
D) A call feature allows the issuer of the bond the right (but not the obligation) to retire all outstanding bonds on (or after) a specific date (the call date), for the call price.
Answer: C
You might also like to view...
The practice where a firm charges differential prices to maximize profits is
A) lot pricing. B) marginal pricing. C) price incrimination. D) price discrimination.
When goods are shipped f.o.b. shipping point, title passes when the goods reach the buyer's dock
Indicate whether the statement is true or false.