Biology Forums - Study Force

Other Fields Homework Help Finance Topic started by: anymous on Mar 21, 2022



Title: The call feature makes a bond riskier because
Post by: anymous on Mar 21, 2022
The call feature makes a bond riskier because

▸ the issuer may not have sufficient cash to redeem the bonds at the call date.

▸ investors who ignore the call will not be paid the bond's principal.

▸ after the bond is called, the investor will need to find a new place to invest, probably at a lower rate.

▸ the issuer may decided not to call the bond and it will have to be held to maturity or sold in the secondary market.


Title: The call feature makes a bond riskier because
Post by: CrazyW27 on Mar 21, 2022
Content hidden