- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 42. Fixed-Income Securities: Defining Elements
- Subject 5. Bonds with Contingency Provisions
CFA Practice Question
A call provision is ______.
A. the right of the underlying borrowers in a pool of loan to repay an amount in excess of the scheduled principal repayment
B. the right of the underlying borrowers in a pool of loan to repay an amount that represents a deficit in relation to the scheduled principal repayment
C. the right of the issuer to retire the issue prior to the stated maturity date
Explanation: A call provision is the right of the issuer to retire the issue prior to the stated maturity date.
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