Examveda

Bond call provision that is not practiced even after several years of issuance is classified as

A. original provision

B. deferred call

C. deferred provision

D. permanent provision

Answer: Option B

Solution (By Examveda Team)

Bond call provision that is not practiced even after several years of issuance is classified as deferred call. A provision that prohibits the company from calling the bond before a certain date. During this period the bond is said to be call protected.

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