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Which of the following statements is FALSE regarding a call provision? Group of answer choices The issuer can repurchase a fraction of the outstanding bonds
Which of the following statements is FALSE regarding a call provision?
Group of answer choices
The issuer can repurchase a fraction of the outstanding bonds in the market or it can make a tender offer for the entire issue.
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.
The call price is generally set at or below, and expressed as a percentage of, the bond's face value.
A call provision allows the issuer to repurchase the bonds at a predetermined price.
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