Which of the Below Statements Is FALSE

question 45

Multiple Choice

Which of the below statements is FALSE?

• A) A guaranteed bond is an obligation guaranteed by another entity.
• B) Refunding is much more comprehensive than call protection because it prohibits the early redemption of the bonds for any reason
• C) Most corporate issues have a call provision allowing the issuer an option to buy back all or part of the issue prior to maturity.
• D) A callable corporate bonds is generally callable at a premium above par with the amount of the premium declining as the bond approaches maturity.

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Definitions:

Total Revenue

The total income a firm receives from the sale of its products, calculated as the price per unit times the number of units sold.

Inelastic

A demand is considered inelastic when it does not significantly change with the price of a good or service, indicating that consumers are relatively insensitive to price changes.

Elastic

Describing a situation where the demand or supply for a product or service is sensitive to changes in price or other factors.

Decrease Supply

A situation where there's a reduction in the quantity of a good or service that producers are willing and able to sell at a given price.