Question: why issuers continue to issue callable bonds? Short Questions have projet Question 16: A call provision on a bond allows the issuer to redeem (call

why issuers continue to issue callable bonds?

Short Questions have projet Question 16: A call provision on a bond allows the issuer to redeem (call back) the bond at will. Investors do not like call provisions so why do issuers continue to issue callable bonds? (5 Marks) 4 Solution: They Continue to Continue to issue Call provision or Callable bonds, because the issurs may want to change their Capital Strautine in the futene and may went that many . Also if they they also Call back their bonds. Call provission will excuted when Interst-rate faells and bound Value Ense.. Note: The Callable time is allracy set in indeutune. Before the Centrout happens they "Bar Investers and Lenders ! agree on the collable time. 4y may smus Date R Callable W rahunty Page 7 of 8 You can't cally back your band haha the 4th year

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