Which of the Following Statements Is Correct

question 11

Multiple Choice

Which of the following statements is correct?

• A) All else the same, an investor will require less return to invest in a callable bond than one that is not callable.
• B) All else the same, an investor will require more return to invest in a callable bond than one that is not callable.
• C) The call feature does not impact the return that investors demand.
• D) We would need to know the current level of interest rates to answer this question.

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