Q540
If bond's call provision is practiced in first year of issuance then an additional payment is classified as
A.
issuance provision
B.
bond provision
C.
call provision
AnswerD.
First provision
Answer: Option C
Solution
Answer: Option C
Solution:
If bond's call provision is practiced in first year of issuance then an additional payment is classified as call provision. A call provision is a provision on a bond or other fixed-income instrument that allows the issuer to repurchase and retire its bonds.