The Yield to Call Is Always Higher Than the Yield

question 94

True/False

The yield to call is always higher than the yield to maturity for coupon bonds.

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Definitions:

Firm

A business enterprise or establishment engaged in commercial, industrial, or professional activities.

Normal Good

A type of good for which demand increases when consumer income rises, and falls when consumer income decreases.

Demand Shift

A change in the quantity demanded at every price point, often caused by factors like consumer preferences, income, and price of related goods.

Quantity Demanded

The cumulative quantity of a product or service that buyers are ready and capable of buying at a specific price.