Which of the following is TRUE about the call feature of a bond It:（）
A. stipulates whether and under what circumstances the bondholders can request an earlier repayment of the principal amount prior to maturity.
B. describes the credit risk of the bond.
C. stipulates whether and under what circumstances the issuer can redeem the bond prior to maturity.
参考答案：C
解析：
Call provisions give the issuer the right ( but not the obligation) to retire all or a part of an issue prior to maturity. If the bonds are "called," the bondholder has no choice but to turn in his bonds. Call features give the issuer the opportunity to get rid of expensive (high coupon) bonds and replace them with lower coupon issues in the event that market interest rates decline during the life of the issue. Call provisions do not pertain to maturity or credit risk. A put provision gives the bondholders certain rights regarding early payment of principal.