Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)Before the call date,investors anticipate the optimal strategy that the issuer will follow,and the bond price reflects this strategy.
• B)The yield to maturity of a callable bond is calculated as if the bond were called at the earliest opportunity.
• C)A callable bond will trade at a lower price (and therefore a higher yield)than an otherwise equivalent non-callable bond.
• D)The price of a callable bond can be low when yields are high,but does not rise above the call value when the yield is low.

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Definitions:

Active Listening

A communication technique that involves giving full attention, understanding, responding, and remembering what is being said.

Communication Competency

The ability to effectively convey, receive, and interpret messages and information through verbal, non-verbal, and written means.

Empathizing Skill

The ability to understand and share the feelings of another, fostering better communication and relationships.

Influencing Skill

The ability to effectively persuade or guide others to support specific viewpoints, decisions, or actions.