hard · Debt Capital Markets pricing-yields-curve
An analyst is evaluating a 'make-whole call' provision. Why is this feature generally considered 'investor-friendly' compared to a standard fixed-price call?
- It ensures the investor is compensated for the present value of lost coupons
- It automatically converts the bond to equity if the call is not exercised
- It prevents the issuer from ever refinancing the debt
- It allows the investor to 'put' the bond back if rates rise
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