Other Things Held Constant, If a Bond Indenture Contains a Call

question 87

Multiple Choice

Other things held constant, if a bond indenture contains a call provision, the yield to maturity (YTM) on the bond that would exist without such a call provision will be _____ the YTM with the call provision. 

• A)higher than
• B)lower than
• C)the same as
• D)moving with
• E)unrelated to