If a debt issue is callable,the call price is generally ____ par.
A) greater than
B) less than
C) equal to
D) unrelated to
E) It varies widely based on the risk of the firm.

Question

Quizplus · Accepted Answer

If a debt issue is callable, the call price is generally greater than par. This is because the issuer wants to incentivize investors to allow the issuer to call the debt early, so they typically offer a higher price than the face value (par) of the debt.

If a Debt Issue Is Callable,the Call Price Is Generally