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Management · Q550

Financial Management

Graduate and Post Graduate · Management · question 550

Q550

Call provision practiced by company which states that call price will be paid is classified as

A.
super refund provision
B.
super put redemption
C.
make-whole call provision
Answer
D.
super call provision

Answer: Option C

Solution

Answer: Option C
Solution:
Call provision practiced by company which states that call price will be paid is classified as make-whole call provision. A make whole call (provision) is a type of call provision on a bond allowing the borrower to pay off remaining debt early.