- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 42. Fixed-Income Securities: Defining Elements
- Subject 5. Bonds with Contingency Provisions
CFA Practice Question
Which of the following provides the most flexibility for the bond issuer?
A. A call provision
B. A put provision
C. A sinking fund provision
Explanation: 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.
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