If an Investor Is Expecting a Period of Higher Interest

question 46

Multiple Choice

If an investor is expecting a period of higher interest rates soon,which bond feature would she prefer?

• A)Callable
• B)Retractable
• C)Convertible
• D)Extendible

---

Definitions:

Second Law

Typically refers to the Second Law of Thermodynamics, which states that the total entropy of an isolated system can never decrease over time, indicating a tendency towards disorder or equilibrium.

Usable Energy

The portion of energy in a system that can be used to perform work or is available to be converted into work.

Thermodynamics

Principles governing energy transfer (often expressed in terms of heat transfer). See first law of thermodynamics and second law of thermodynamics.

Decreases

A reduction in size, amount, extent, or number.