Debt that may be extinguished before maturity is referred to as:
A) Sinking-fund
B) Debentures
C) Unfunded debt
D) Callable debt

Question

Quizplus · Accepted Answer

Callable debt is a type of debt that can be called (repurchased) by the issuer before its maturity date. This gives the issuer the opportunity to reduce its future interest payments, but it also creates uncertainty for the holders of the debt. The other options are not necessarily linked to the concept of extinguishing debt before maturity.

Debt That May Be Extinguished Before Maturity Is Referred to As