Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

SOFE Exam AFE Topic 2 Question 95 Discussion

Actual exam question for SOFE's AFE exam
Question #: 95
Topic #: 2
[All AFE Questions]

What give the issuer the right to retire the bond at certain times, typically if prevailing market interest rates fall below the rate on the bond?

Show Suggested Answer Hide Answer
Suggested Answer: D

by Aimee at Feb 06, 2025, 02:25 AM

Limited Time Offer

25%

Off

Get Premium AFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Lauran
15 days ago
Prepayment provisions? Sounds like the bond is having a midlife crisis and wants to cash out early. What a rebel!
upvoted 0 times
...
Latrice
17 days ago
Call options? More like 'call the issuer and beg them not to retire the bond!' Am I right, folks?
upvoted 0 times
Kasandra
23 hours ago
A) Call options
upvoted 0 times
...
...
Glenn
18 days ago
Investments modules? Is this a finance exam or a video game? Clearly, the answer is call options.
upvoted 0 times
...
Tracey
20 days ago
Variable income statements? Really? That's about as relevant as a chocolate teapot in this context.
upvoted 0 times
Allene
1 days ago
B) Prepayment provisions are also a factor in retiring bonds.
upvoted 0 times
...
Candra
2 days ago
A) Call options give the issuer the right to retire the bond at certain times.
upvoted 0 times
...
...
Alpha
1 months ago
Prepayment provisions, no doubt. It's like getting an early birthday present, but for bonds.
upvoted 0 times
...
Justine
2 months ago
I'm not sure, but I think it might be B) Prepayment provisions because it allows the issuer to retire the bond early.
upvoted 0 times
...
Kallie
2 months ago
Call options, of course! Gives the issuer the power to retire the bond if market rates fall. Totally makes sense.
upvoted 0 times
Marci
28 days ago
That's correct, prepayment provisions allow the issuer to retire the bond early.
upvoted 0 times
...
Terrilyn
1 months ago
B) Prepayment provisions
upvoted 0 times
...
Keneth
1 months ago
Yes, call options give the issuer the right to retire the bond if market rates fall.
upvoted 0 times
...
Augustine
1 months ago
A) Call options
upvoted 0 times
...
...
Alfreda
2 months ago
I agree with Hubert, call options give the issuer the right to retire the bond.
upvoted 0 times
...
Hubert
2 months ago
I think the answer is A) Call options.
upvoted 0 times
...

Save Cancel