Question: True or False. If false, please correct the statement. A call provision gives bondholders the right to demand, or call for, repayment of a bond.

True or False. If false, please correct the statement.

A call provision gives bondholders the right to demand, or "call for," repayment of a bond. Typically, calls are exercised if interest rates rise, because when rates rise the bondholder can get the principal amount back and reinvest it elsewhere at higher rates.

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