An Issuer of a Bond Is More Likely to Exercise

question 80

Multiple Choice

An issuer of a bond is more likely to exercise a call option on the bond after an increase in interest rates.

• A) a decrease in interest rates.
• B) a decrease in the bond's price.
• C) a downgrade of the bond's rating by Moody's.

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Definitions:

Genes

Sequences of DNA that code for proteins and determine the characteristics and inherited traits of organisms, playing a crucial role in biology and genetics.

Deoxyribonucleic Acid (DNA)

The chemical structure, shaped like a twisted ladder, that contains all of the genes.

Complex Molecule

A molecular structure consisting of a large number of atoms bonded together in a more elaborate and interconnected manner.

Twisted Ladder

A common metaphor used to describe the double helix structure of DNA, highlighting its two strands wound around each other.