When a Callable Bond Sells at a Premium,the Likelihood of a Call

question 94

Multiple Choice

When a callable bond sells at a premium,the likelihood of a call is ________ and the yield to worst is the yield to ________.

• A)high,call
• B)low,call
• C)low,maturity
• D)high,maturity
• E)high,par

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Definitions:

Pantheon

An ancient Roman temple dedicated to all the gods of pagan Rome; famous for its massive dome and oculus.

Ellipse

A geometric shape characterized by its elongated circular form, resembling a flattened circle.

Sanctuary of Fortuna Primigenia

An ancient Roman religious complex in Palestrina, Italy, dedicated to the goddess Fortuna, noted for its unique terraced design and use of concrete.

Barrel Vaults

An architectural element that forms a continuous arched shape resembling a barrel or tunnel and is used to cover a space.