Examveda
Examveda

If bond's call provision is practiced in first year of issuance then an additional payment is classified as

A. issuance provision

B. bond provision

C. call provision

D. First provision

Answer: Option C

Solution(By Examveda Team)

If bond's call provision is practiced in first year of issuance then an additional payment is classified as call provision. A call provision is a provision on a bond or other fixed-income instrument that allows the issuer to repurchase and retire its bonds.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process