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Which of the following features allows a borrower to redeem or repurchase a bond issue before...

  1. Which of the following features allows a borrower to redeem or repurchase a bond issue before its maturity date?

    a.

    The call provision
    b.

    Convertibility
    c.

    Floating rate
    d.

    The priority of claims
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Answer #1

a. The call provision

Callable bonds have a provision in the bond indenture to buy back the bond before maturity

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