A Callable Bond Will Have a Lower Value Than a Straight

question 69

True/False

A callable bond will have a lower value than a straight bond with the same coupon rate and maturity.

---

Definitions:

Odd Years

Years that are not evenly divisible by two, indicating an odd number as the final digit.

W-3

A tax form used in the United States that summarizes the total wages paid and taxes withheld for all employees of a company.

FICA-Medicare

The portion of FICA taxes that funds Medicare, providing health insurance for the aged and disabled.

Employees' Contribution

Monies that employees contribute from their salaries towards benefits, retirement plans, or taxes.