Question
A bond that gives the bond issuer the opportunity to repurchase the bond prior to the maturity date is called a ________ bond. A. Catastrophe
A bond that gives the bond issuer the opportunity to repurchase the bond prior to the maturity date is called a ________ bond.
- A. Catastrophe
- B. Puttable
- C. Callable
- D. Convertible
Suppose a company is about to issue a bond and are debating what type of bond to use. They expect interest rates to decrease in the future. Which of the following would most likely be beneficial given the expectation for interest rates to decline?
- A. Puttable bond
- B. a Traditional bond with no special features
- C. Floating-rate bond
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Financial Management For Decision Making
Authors: Harold Jr. Bierman, Seymour Smidt
1st Edition
1587982129, 9781587982125
