A bond which has a deferred call
A)does not have to be redeemed when it reaches maturity.
B)can be retired at any time prior to maturity provided six months notice is given.
C)cannot be retired for a specific period of time after which it can be retired at any time.
D)can be retired at any time during the initial call period but after that time can not be redeemed prior to maturity.

Question

Quizplus · Accepted Answer

A deferred call provision means that the bond cannot be called or retired by the issuer for a specified period after issuance, but can be called after that period.

A Bond Which Has a Deferred Call