The party that has the right to exercise a call option on callable bonds is:
A)The bondholder.
B)The bond issuer.
C)The bond indenture.
D)The bond trustee.
E)The bond underwriter.

Question

Quizplus · Accepted Answer

The bond issuer has the sole right to exercise a call option on callable bonds, allowing them to redeem the bonds before maturity at a predetermined price. The other parties listed (bondholder, bond indenture, bond trustee, and bond underwriter) do not have this right.

The Party That Has the Right to Exercise a Call