Which of the Following Statements About Callable Bonds Is Not

question 86

Multiple Choice

Which of the following statements about callable bonds is not true?

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

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