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.

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Definitions:

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A queen of France in the early 14th century, known for her patronage of the arts.