Debt that may be extinguished before maturity is referred to as:
A) sinking-fund debt.
B) debentures.
C) callable debt.
D) indenture debt.

Question

Quizplus · Accepted Answer

Callable debt refers to bonds that can be redeemed by the issuer before their maturity date. This feature allows the issuer to retire the debt early, typically when interest rates have fallen, allowing them to refinance the debt at a lower cost.

Debt That May Be Extinguished Before Maturity Is Referred to As