3. Callable Bonds (LO2, CFA3) Which of the following describes a bond with a call feature? a....
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3. Callable Bonds (LO2, CFA3) Which of the following describes a bond with a call feature?
a. It is attractive because the immediate receipt of principal plus premium produces a high return.
b. It is more likely to be called when interest rates are high because the interest savings will be greater.
c. It would usually have a higher yield than a similar noncallable bond.
d. It generally has a higher credit rating than a similar noncallable bond.
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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