A Calamity Call Allows the Issuer to Recall All Securities

question 5

Multiple Choice

A calamity call allows the issuer to recall all securities for a specified time after issue in the event that all but which of the following occurs?

• A) Investors want to cash out their positions.
• B) Interest rates decline sharply.
• C) Prepayments decline sharply.
• D) Reinvestment rates are below what was promised to investors.

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Definitions:

Cannon-Bard Theory

A theory of emotion that proposes that emotions and bodily changes occur simultaneously, in contrast to theories that suggest emotions are a result of bodily reactions.

James-Lange Theory

A theory suggesting that emotions occur as a result of physiological reactions to events.

Schachter-Singer Theory

A theory of emotion that states emotions are determined by physiological arousal and the cognitive interpretation of that arousal.

Binge Eating

The consumption of large quantities of food in a short period of time, often associated with a feeling of loss of control over eating.