Chapter 5, Problem 2MC

Summary Introduction

Case summary:

Person SS and Person ST are the vice presidents of M insurance company and also the co-directors for pension and management division of the company. The new clients NM alliance wants company M to make a seminar to the mayors of the cities and Person SS and Person ST will take the actual presentation. Person X helps them by way of answering their questions.

Characters in the case:

• Person SS
• Person ST
• Person X

To determine: The sinking fund provisions and call provisions and whether these provisions make the bond less risky and more risky.