True or false?A call provision gives bondholders the right to demand, or "call for," repayment of a bond. Typically, companies call bonds if interest rates rise and do not call them if interest rates decline.

False.

Explanation:

A call provision is a stipulation on the contract of a bond that allows the issuer to repurchase and retire debt security. A bind indenture states circumstances that can trigger a call, for example if underlying asset gets to a preset price.

In the question it stated that the bond holder can demand for a call. This is untrue as only the issuer has the right to request a call.

If the bondholder wants to dispose of his shares he will do so through the secondary market and not by requesting a call.

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