1:44 PM FNB 100 Quiz 2 ezto.mheducation.com ect Sherline Legrand FNB 100 Princip

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1:44 PM FNB 100 Quiz 2 ezto.mheducation.com ect Sherline Legrand FNB 100 Principles of Finance: Fall 2017 NANCE instructions help Save& Exit Submit Question 9 (of 25) MC Qu. 21 Which of the following is an important advan... Which of the following is an important advantage to the issuer of a bond with a call provision? O They are able to avoid reinvestment rate risk They are able to avoid interest rate risk O They allow for refinancing opportunities. O They are able to reduce their credit risk References Multiple Choice MC Qu. 21 Which of the following is an important

Explanation / Answer

2. Issuer of the bond with call provision can avoid interest rate risk. They call off the existing bonds and issue new debts with lower costs thus the overall servicing cost for a debt gets low.

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