Fundamentals of Corporate Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition)
Fundamentals of Corporate Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition)
4th Edition
ISBN: 9780134641928
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 15, Problem 7CT
Summary Introduction

Bond: Bond is a debt instrument issued to raise the capital of an organization. It is also known as a loan given by the investor to an organization.

Call feature of bond: It is the very useful feature of the bond which allows the issuer of bond to repurchase the bond at the price which is predetermined at the time of the agreement.

To Identify: The reason for the valuable treatment of a call feature in a company issuing bonds.

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