Question

A type of bond that allows the bond issuer to retain the privilege of redeeming it at a pre-specified price at some time prior to its normal maturity date.

Answer 1

Answer: Callable Bond

Step-by-step explanation:

Within the written agreement between the issuer and creditor, known as the indenture there are terms that lay out important provisions such as basic terms, repayment arrangements, protective covenants, and call provisions. The call provision allows the issuer the right to repurchase or "call" part or the entire bond issue at a stated price over a specific time period.