Examveda
Examveda

In call provision, it is stated that company will pay to issue an amount

A. higher than par value

B. lower than par value

C. equal to par value

D. zero to par value

Answer: Option A

Solution(By Examveda Team)

In call provision, it is stated that company will pay to issue an amount higher than par value. A call provision is a provision in a bond contract that gives the issuing corporation the right to redeem the bonds under specified terms prior to the normal maturity date. The call provision generally states that the company must pay the bondholders an amount greater than the par value if they are called.

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