Q15RQ
Question
What does it mean when a company calls a bond?
Step-by-Step Solution
Verified Answer
A company called bond when there are chances that the interest rate will fall in the future.
1Step 1: Definition of company
A company is the legal organisation which operate to full fill the profit motive by carrying the production or service activities.
2Step 2: Bond call
When a company calls a bond, it means the company redeems its bond before the maturity date of the bonds. When a company call bond, it pays face value plus the accrued interest to the investor
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