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Commerce · Q590

Financial Management

Graduate and Post Graduate · Commerce · question 590

Q590

Bonds with deferred call have protection which is classified as

A.
provision protection
B.
call protection
Answer
C.
deferred protection
D.
None of the above

Answer: Option B

Solution

Answer: Option B
Solution:
Bonds with deferred call have protection which is classified as call protection. A call protection is a protective provision of a callable security prohibiting the issuer from calling back the security for a specified period of time.