Which One of the Following Statements Related to Callable Bonds

question 32

Multiple Choice

Which one of the following statements related to callable bonds is correct?

• A) Callable bonds are issued at the call price.
• B) Callable bonds can be called at any time.
• C) Callable bonds are generally called at the market price at the time of the call.
• D) Callable bonds are more apt to be called if market interest rates decline.
• E) Callable bonds are generally priced higher than comparable noncallable bonds.

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