If a firm wants to issue bonds but prefers to reserve the right to pay off the bonds before maturity, what type of bond should it issue?
A. Debentures
B. Term bonds
C. Serial bonds
D. Convertible bonds
E. Callable bonds
Answer: E. Callable bonds
Marketing MCQ
Marketing Chapter 18
If a firm wants to issue bonds but prefers to reserve the right to pay off the bonds before maturity, what type of bond should it issue?