When a Callable Bond Sells at a Premium, the Likelihood

question 89

Multiple Choice

When a callable bond sells at a premium, the likelihood of a call is and the yield to worst is the yield to .

• A) low, maturity
• B) high, maturity
• C) low, call
• D) high, call

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Definitions:

Foreign Tax Credit

A nonrefundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings.

Taxable Income

The portion of an individual's or a corporation's income that is subject to taxation by the government after deductions and exemptions.

Foreign Income Taxes

Taxes levied by a foreign country on income earned within its jurisdiction, which can sometimes be credited against domestic taxes in the taxpayer's home country.

Premium Tax Credit

A refundable credit that helps eligible individuals and families with low to moderate income afford health insurance purchased through the Health Insurance Marketplace.