answer 6 and 7 and 8 and 9Solution6 Calling a bond is an opt
answer 6 and 7 and 8 and 9
Solution
6)
Calling a bond is an option to issuer if the indenture has a provision for calling bonds. Bonds are usually called with a call premium. When interest rates are decreased, bond will be called to reissue those at a lower coupon rate.
Hence, correct option is (a) call feature.
