Question

ben purchased a 30-year corporate bond in 2018 that promised to pay him 4% interest semi-annually for the life of the loan. the corporation reserved the right to redeem the bond in 2038. which of those numbers represents the bonds call feature? options: 30, 4, 2018, 2038

Explanation:

A bond's call feature refers to the year (or time) when the issuer can redeem the bond early. Here, the corporation can redeem the bond in 2038, so 2038 represents the call feature. 30 is the bond's maturity period, 4 is the interest rate, and 2018 is the purchase year.

Answer:

2038 (the option with "2038")