If a company's bonds are callable,
a. the investor or buyer of the bonds has the right to retire the bonds.
b. the issuing company is likely to retire the bonds before maturity if the bonds are paying 9% interest while the market rate of interest is 6%.
c. the bonds are never allowed to remain outstanding until the maturity date.
d. the investor never knows what the redemption price will be until the bonds are actually called.
b
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Estimated liability for product warranties to be paid in the future is a current liability
a. True b. False Indicate whether the statement is true or false
Economic theory holds that the most profitable pay level, all things being equal, would be at the
A. mid-range level. B. highest possible level. C. CPI rate. D. market rate. E. lowest possible level.
Shares of treasury stock are
a. issued shares that have been bought back by the corporation and are being held by the corporation. b. shares held by the U.S. Treasury Department. c. part of the total outstanding shares but not part of the total issued shares of a corporation. d. unissued shares that are held by the treasurer of the corporation.
Which of the following is not characteristic of a corporation?
A) The financial loss that a stockholder may suffer from owning stock in a public company is limited. B) Cash dividends paid by a corporation are deductible as expenses by the corporation. C) A corporation can own property in its name. D) Corporations are required to file federal income tax returns.