Bonds That Have a Call Feature Are Less Desirable to Investors

question 112

True/False

Bonds that have a call feature are less desirable to investors and therefore pay a slightly higher rate than bonds without this feature.

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Definitions:

Accounting

A system that collects and processes (Analyzes, measures, and records) financial information about an organization and reports that information to decision makers.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Operating Activities

Activities that are part of a company's primary operations, including production, sales, and day-to-day business functions.

Indirect Method

A financial reporting approach used to generate the statement of cash flows, where net income is adjusted for changes in non-cash accounts to reveal cash generated or consumed by operating activities.