Wayne Enterprises recently sold $50 million of bonds; $10 million of the bonds had a call provision, effect on or after June 30, 2035. What would probably be different between the call bonds and the non-call bonds? ? a. The call bonds will not be as attractive as the non-call bonds. b. The call bonds would have to be turned in on the call date of June 30, 2035. c. The call bonds might carry a slightly higher interest rate than the non-call bonds. d. The non-call bonds cannot be sold on the secondary market until after June 30, 2035.
Added by Ray W.
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This means that the issuer has the option to buy back the bonds from the bondholders at a predetermined price, usually at a premium to the face value of the bond. Show more…
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