Callable Bonds I) Normally Have a Call Protection Period

question 102

Multiple Choice

Callable bonds I) normally have a call protection period
II) frequently pay one year's coupon amount as the call premium
III) tend to be called only if market interest rates rise
IV) are preferred by investors over non-callable bonds

• A) I and II
• B) II and III
• C) I, II and III
• D) I, III and IV
• E) I, II, III and IV