Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)The holder of a callable bond faces reinvestment risk precisely when it hurts: when market rates are lower than the coupon rate she is currently receiving.
• B)When yields have risen,the issuer will not choose to exercise the call on the callable bond.
• C)The issuer will exercise the call option only when the prevailing market rate exceeds the coupon rate of the bond.
• D)A callable bond is relatively less attractive to the bondholder than the identical non-callable bond.

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Definitions:

Prescribed Medication

Drugs that are legally provided to patients by healthcare professionals to treat and prevent diseases.

Route the Call

The process of directing a telephone call to the appropriate recipient or department within a system.

Document

To record or provide written evidence of information, processes, or transactions.

Dispensing Refills

The process of providing additional supplies of a prescribed medication to a patient, based on a previously authorized prescription.