SIE (Securities Industry Essentials) Practice Exam

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The call provision of a bond typically specifies:

Maturity date and interest rate
Collateral and credit rating
Call date and call price
Covenants and restrictions

The correct answer is: Call date and call price

The call provision of a bond usually refers to the agreement that allows the issuer of the bond to buy back the bond from the bond holder before the maturity date. This is typically done in the event that interest rates decrease or financial circumstances change for the issuer. Option A is incorrect because although the maturity date and interest rate are important factors in a bond, they are not typically specified in the call provision. Option B is incorrect because collateral and credit rating are not relevant to the call provision. Option D is incorrect because covenants and restrictions are also not typically included in the call provision. Thus, the correct answer is C as it specifies the date on which the bond can be called and the price at which it can be redeemed by the issuer.