When a Bond Has a Call Feature, the Investor Should

question 105

Multiple Choice

When a bond has a call feature, the investor should consider the ________ when deciding whether to invest in the bond if it is not selling at par value.

• A) convertibility provision
• B) interest rate
• C) yield to call
• D) yield to maturity

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Definitions:

Moral Standards

Principles concerning the distinction between right and wrong or good and bad behavior, often culturally defined and personally or socially enforced.

Rationalization

The process of explaining an often undesirable behavior or feeling in a logically acceptable way, distancing oneself from the true underlying motivations.

Ethical Course

A direction of action that aligns with moral principles and professional integrity.

Misconception

A misconception is a view or opinion that is incorrect because it is based on faulty thinking or understanding.