Which One of the Following Increases the Probability That a Bond

question 75

Multiple Choice

Which one of the following increases the probability that a bond will be called?

• A)The call premium is relatively high.
• B)The bond is within the call protection period.
• C)The bond was issued within the past year.
• D)Market interest rates decline.
• E)The bond is selling at par.

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Definitions:

Promoter

An individual or company that organizes and provides the initial capital, talent, or other resources to start a venture or event.

Potential Liability

The possibility of being responsible for future legal judgments or obligations due to current actions, circumstances, or contracts.

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.

Actual Authority

The express and implied powers a principal intentionally grants to its agent.