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When bonds are called and redeem, they must be ceased to
Answer & Solution
Correct Answer:
Option
A
When bonds are called and redeem, they must be ceased to earn interest. Investors who purchase a company's bonds receive interest on the bond and are promised a return on their investment at a future date. The future date is when a bond matures. Usually, the bond issuer repays the bond principal to the investor on the maturity date.
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