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Author Question: A ________ feature on a bond allows the issuer to buy back the bond from the investor before maturity. (Read 80 times)

tiara099

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Question 1

Investors are willing to purchase bonds with a call feature only if the bonds offer a(n)


◦ slightly lower return than similar bonds without a call feature.
◦ slightly higher number of shares of the issuer's stock.
◦ slightly higher return than similar bonds without a call feature.
◦ extraordinary return similar to an IPO.

Question 2

A ________ feature on a bond allows the issuer to buy back the bond from the investor before maturity.


◦ convertible
◦ dividend
◦ call
◦ recall


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Marked as best answer by tiara099 on Apr 14, 2019

Li Jun

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