Which of the following bonds would be least attractive to an investor? Secured (Collateralized) Sinking fund...
Which of the following bonds would be least attractive to an investor?
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Secured (Collateralized) |
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Sinking fund |
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Callable |
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Retractable |
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Puttable |
Homework Answers
Option C is correct. Callable
Callable bonds are the bonds which are called by the issuer before the maturity at a pre determined price.
When the interest in the market decrease the issuer calls the Bonds and raise the cheap Debt again which is unfavourable to the investor. Investor are obligated to sell the Bond even if they do not want to.
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