Which of the Following Statements Regarding Bond Call Provisions Is

question 22

Multiple Choice

Which of the following statements regarding bond call provisions is FALSE?

• A)When bond yields have increased,by exercising the call on the callable bond and then immediately refinancing,the issuer can lower its borrowing costs.
• B)To understand how call provisions affect the price of a bond,we first need to consider when an issuer will exercise its right to call the bond.
• C)If the call provision offers a cheaper way to retire the bonds,the issuer will forgo the option of purchasing the bonds in the open market and call the bonds instead.
• D)An issuer can always retire one of its bonds early by repurchasing the bond in the open market.

---

Definitions:

Black Identities

The various ways in which Black individuals and communities understand, express, and navigate their cultural, historical, and social identities.

Sexual Minorities

Groups of individuals whose sexual orientation, gender identity, or sexual practices differ from the majority of the surrounding society, often including LGBTQ+ communities.

Psychiatric Distress

Mental or emotional suffering often related to diagnosable psychological disorders, characterized by symptoms like anxiety, depression, and functional impairment.

Heterosexual Counterparts

Individuals of the opposite sex who mirror or correspond to others in a heterosexual relationship or context.