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Which of the following is TRUE about a callable bond: Group of answer choices A. The future cash flow pattern is known with certainty. B.

Which of the following is TRUE about a callable bond:

Group of answer choices

A. The future cash flow pattern is known with certainty.

B. They have tremendous capital appreciation potential when interest rates fall significantly.

C. The call provision allows the bond holder (not issuer) to alter the maturity of the bond.

D.When interest rates drop, the investor faces reinvestment risk associated with reinvesting proceeds of bonds called at relatively lower rates.

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