Asked by Franchezka Mendoza on Jul 03, 2024
Verified
Investors are given the option accepting calls on bonds with call features.
Call Features
Provisions embedded in financial instruments, like bonds, that allow the issuer to repurchase or redeem the instrument before its maturity date.
- Acquire insight into the concept and effects of callable features in bond instruments.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
False
Explanation :
Investors do not have the option to accept calls on bonds with call features; rather, the issuer of the bond retains the right to call (repurchase) the bond at specific times and prices before maturity, according to the terms set forth in the bond's prospectus.
Learning Objectives
- Acquire insight into the concept and effects of callable features in bond instruments.