Asked by Angelisa Tejeda on Jun 01, 2024
Verified
Only callable bonds can be purchased by the issuing corporation before maturity.
Callable Bonds
Bonds that can be redeemed by the issuer before their maturity date at a predetermined call price.
- Gain insight into the ideas and monetary impacts associated with callable and noncallable bonds.
Verified Answer
JN
Jordan NewsomJun 04, 2024
Final Answer :
False
Explanation :
Any bond can be purchased by the issuing corporation before maturity if it's trading in the open market; however, only callable bonds can be redeemed by the issuer before maturity at a predetermined call price.
Learning Objectives
- Gain insight into the ideas and monetary impacts associated with callable and noncallable bonds.