Q565
Bond call provision that is not practiced even after several years of issuance is classified as
A.
original provision
B.
deferred call
AnswerC.
deferred provision
D.
permanent provision
Answer: Option B
Solution
Answer: Option B
Solution:
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.