Question: a call provision allows bondholders to tender (turn in) their bonds at any time and receive the principal amount in return. a true b false

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Cade Walter

7 October, 01:57

Question: a call provision allows bondholders to tender (turn in) their bonds at any time and receive the principal amount in return. a true b false

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Mathias Black · Answer 1

Strictly speaking, a call provision allows bondholders to tender (turn in) their bonds at any time and receive the principal amount in return is a false or incorrect statement. Because there should be time window (not any time) on the agreement where bond can be called. Also, the returned amount could be a part or the entirety with any accrued interest within the provision.