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Which of the following statement is correct? a. Bonds with high coupon payments have greater interest rate risk. b. Bonds rated above Baa (or BBB)
Which of the following statement is correct?
a. Bonds with high coupon payments have greater interest rate risk.
b. Bonds rated above Baa (or BBB) noninvestment-grade bonds are called speculative-grade bonds, high-yield bonds, or junk bonds.
c. Vanilla bonds have coupon payments that are fixed for the life of the bond, with the principal being repaid at maturity.
d. A call provision gives bond investors the option to convert their bonds into the firm's common stocks at a predetermined price called as the call price.
e. All the answers are correct.
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