Question

Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are known as:_____.

Answer 1

correct answer is Callable bonds

Step-by-step explanation:

the answer is Callable bonds because it is that type of bond in which Callable bond provided issuer of bond right to return the investor principal and cease interest payment before bond mature

but generally bond comes with a certain restriction on the call option

and Callable bond will be beneficial to bond issuer only when if the interest rate is expected to befall

so here the correct answer is Callable bonds