Multiple Choice
When a company exercises a call feature and buys its outstanding bonds back prior to their maturity date:
A) the amount of cash paid depends on the market rate of interest at the time the bonds are called
B) any related unamortized discount will be removed from the books
C) the company will always pay less than face value for the bonds
D) both a and b are correct
Correct Answer:
Verified
Correct Answer:
Verified
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