Which of the Following Statements About Callable Bonds Is NOT

question 21

Multiple Choice

Which of the following statements about callable bonds is NOT correct?

• A)Callable bonds have higher yields than comparable non-callable bonds.
• B)The call price is usually at par or slightly above the bond's par value.
• C)The shorter is the term to maturity,the greater is the call interest premium.
• D)Investors are notified when bonds are called.

---

Definitions:

Tolerance

The process of becoming less responsive to a specific amount of a substance or stimulus after repeated exposure.

Dependence

A condition characterized by a physical or psychological need for a substance or behavior, often leading to compulsive use.

Legal Drugs

Substances that are permitted by law for sale and consumption, which can include prescription medications, over-the-counter drugs, and certain recreational drugs.

Illegal Drugs

Substances whose production, sale, or possession is prohibited by law due to their potential for abuse or harm.