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kvasek [131]
3 years ago
15

If the coupon interest rate remains constant from the time of issue until the bond matures, then the bond is called afixed-rate

bond. The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called the . Which term is used to describe a call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue? Deferred call provision Sinking fund provision Declining call provision
Business
1 answer:
marta [7]3 years ago
8 0

Answer:

Indenture

Deferred call provision

Explanation:

Indenture is defined as the contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds.

A call provision is defined as the right that the issuer of a security has to call or redeem the security at certain times and under specific conditions.

The call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue is called deferred call provision.

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sveticcg [70]

Answer:

a. True

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