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_____________is the name given to the return earned by an investor who purchases a bond for its market price, holds it until it is called on its first call date, and receives all interest payments and the call price between the date of purchase and the call date.

2 Answers

3 votes

Answer:

Callable bond

Step-by-step explanation:

A callable bond is a type of bond that can be redeemed at specific date before the final maturity date of the bond. This type of bond provides advantages to both the issuing corporation and the investors. The issuing corporation can pay it debt earlier, and the investor can collect the bond's call price before the maturity date. When callable bonds are issued that generally specify the call date and the bond's price at that date. But corporations can also call regular non-callable bonds if they possess excess cash and do not need to borrow money anymore, of the interest rates fell and they can issue new bonds with lower coupon rates. Generally the price of callable bonds is different than the bond's face value.

User DrewT
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4 votes

Answer: The answer is dividend which is the amount earned for investing

Step-by-step explanation:

User David Yuan
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