Which of the Following Statements Regarding Callable Bonds Is FALSE

question 48

Multiple Choice

Which of the following statements regarding callable bonds is FALSE?

• A)The holder of a callable bond faces reinvestment risk precisely when it hurts: when market rates are lower than the coupon rate she is currently receiving.
• B)When yields have risen,the issuer will not choose to exercise the call on the callable bond.
• C)The issuer will exercise the call option only when the prevailing market rate exceeds the coupon rate of the bond.
• D)A callable bond is relatively less attractive to the bondholder than the identical non-callable bond.

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Definitions:

Electronic Health Record

Digital version of patients' paper charts, allowing real-time, patient-centered records accessible instantly and securely to authorized users in the healthcare system.

Electronic Medical Record

A digital version of a patient's paper chart, making health information available instantly and securely to authorized users.

HIPAA

The Health Insurance Portability and Accountability Act; a US law designed to provide privacy standards to protect patients' medical records and other health information.

Electronic Prescriptions

A method by which prescriptions are sent digitally from a healthcare provider to a pharmacy, improving accuracy and efficiency.