A call provision in a bond...A. Limits the actions of the borrower.B. Protects the borrower from unscrupulous practices by the l

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A call provision in a bond...A. Limits the actions of the borrower.B. Protects the borrower from unscrupulous practices by the l

ender.C. Allows the issuer to repurchase the bonds on the open market prior to maturity.D. Grants the issuer the option to repurchase the bonds prior to maturity at a pre-specified price.

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1 answer:

Masja [62] · Answer 1 · 2022-05-30T09:45:16+03:00

Answer:

D. Grants the issuer the option to repurchase the bonds prior to maturity at a pre-specified price.

Explanation:

Call provision -

It is a condition given on the contract for the bond or any fixed - income instruments , which enable the issuer to again purchase the bond at some previously decided price amount , is known as a call provision .

Hence , from the given statements , the correct statement regarding call provision is option ( D. ) .