Which of the Following Statements Is CORRECT

question 34

Multiple Choice

Which of the following statements is CORRECT?

• A) Two bonds have the same maturity and the same coupon rate. However, one is callable and the other is not. The difference in prices between the bonds will be greater if the current market interest rate is below the coupon rate than if it is above the
• Coupon rate.
• B) A callable 10-year, 10% bond should sell at a higher price than an
• Otherwise similar noncallable bond.
• C) Corporate treasurers dislike issuing callable bonds because these bonds may require the company to raise additional funds earlier than would be true if noncallable bonds with the same maturity were
• Used.
• D) Two bonds have the same maturity and the same coupon rate. However, one is callable and the other is not. The difference in prices between the bonds will be greater if the current market interest rate is above the coupon rate than if it is below the
• Coupon rate.
• E) The actual life of a callable bond will always be equal to or less than the actual life of a noncallable bond with the same maturity. Therefore, if the yield curve is upward sloping, the required rate
• Of return will be lower on the callable bond.

Comprehend the necessity of maintaining positive relationships even when delivering negative news.

Acknowledge the importance of preliminary explanations in cushioning the impact of bad news.

Develop skills in crafting messages that present bad news or refusals in a way that aims to preserve goodwill and potentially benefit the reader.

Understand the first step in refusing requests and structuring refusal messages.

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Definitions:

Personal Selling

A direct form of marketing where a salesperson personally communicates with potential customers to sell goods or services.

Assumptive Close

A sales technique where the salesperson assumes that the customer has already decided to purchase and closes the sale under that assumption.

Urgency Close

A sales technique that creates a sense of urgency to encourage immediate buying decisions, often through limited-time offers or scarcity.

Decision Confirmation

The process by which individuals seek to validate their choices through additional information or feedback from others.