Which of the Following Is NOT a True Statement

question 46

Multiple Choice

Which of the following is NOT a true statement?

• A)Mortgage bonds are debt instruments that are secured by real assets.
• B)Callable bonds give the issuer the option to "call" or repurchase outstanding bonds at predetermined call prices at specified times.
• C)Retractable bonds allow the bondholder to sell the bonds back to the issuer at predetermined prices at specified times earlier than the maturity date.
• D)Extendible bonds allow the issuer to extend the maturity date of the bond.

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Definitions:

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, representing the individual's tax bracket.

Depreciation Life

The period over which a fixed asset is expected to depreciate until it reaches its salvage value.

Market Value

The ongoing rate at which you can buy or sell an asset or service within the open market.

Cost of Capital

The earnings rate a firm must reach through its investments to uphold its market worth and secure financing.