A Bond Has a Make-Whole Call Provision

question 10

Multiple Choice

A bond has a make-whole call provision.Given this, you know that the:

• A)bond will always sell at par.
• B)call premium must equal the annual coupon payment.
• C)call price is directly related to the market rate of interest.
• D)call price is inversely related to the market rate of interest.
• E)bond must be a zero coupon bond.

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Definitions:

Olfactory Cortex

The region of the brain responsible for processing smell, located within the temporal lobe and key to the sense of smell.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobes, associated with decision making, complex thought processes, and moderating social behavior.

Smell Processed

The mechanism by which olfactory information is detected by the nose and interpreted by the brain.

Olfactory Bulb

The olfactory bulb is a structure located in the forebrain that processes information about odors detected by cells in the nasal cavity.