Which of the following provides the most flexibili
Which of the following provides the most flexibility for the bond issuer?
A. Put provision
B. Call provision
C. Sinking fund provision
参考解答
4j8***102
2024-11-14 21:50:08
Ans:B;
B is the correct choice. A call provision allows the issuer to repurchase the bond for any reason, assuming the call deferral period has ended and upon payment of any call premium. Call features give the issuer the opportunity to replace higher-than-market coupon bonds with lower-coupon issues.
A is not the correct choice. A put provision allows the bondholder to sell the bond to the issuer at a specified price prior to maturity. Therefore, it provides flexibility for the bondholder.
C is not the correct choice. An accelerated sinking fund provision rather than just a sinking fund provision provides flexibility for the bond issuer.
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