Asked by Ashley Perry on Mar 10, 2024

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Convertible bonds typically have a call provision.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the corporation's stock at the bondholder's option.

Call Provision

A feature in certain contracts allowing the issuer the right to redeem or pay off the contract before its maturity date, usually bonds.

  • Achieve an understanding of the fundamental elements and targets of convertible securities, warrants, and options.
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KY
Kaitlin Yonke

Mar 10, 2024

Final Answer :
True
Explanation :
Convertible bonds often contain a call provision which allows the issuer to repurchase the bonds before their maturity date. This feature provides the issuer with flexibility in managing their debt and can also mitigate the risk of rising interest rates.