What Is a Call Provision

Multiple Choice

What is a call provision?

A) the periodic repurchasing of issued bonds through a sinking fund by the issuer
B) an option to the issuer to repurchase the bonds at a predetermined price
C) the option for the bondholder to convert each bond owned into a fixed number of shares of common stock
D) a clause in a bond contract that restricts the actions of the issuer that might harm the interests of the bondholders