The most common condition that must be met for a bond to be called is
A) the repayment of all principal and interest.
B) the passage of time.
C) a change in the market rate of interest from that which was agreed to at the bond issue date.
D) the sale of the asset which was financed by the bond.
E) a sale of the bond by the original purchaser.

Question

Quizplus · Accepted Answer

The most common condition for a bond to be called is the passage of time. Typically, bonds have a call protection period; once this period expires, the issuer has the option to call the bond before its maturity date.

The Most Common Condition That Must Be Met for a Bond