If a Bond Issue Is Callable,the Call Price Generally Is

question 37

Multiple Choice

If a bond issue is callable,the call price generally is:

• A)less than par value.
• B)variable based on the market rate of interest.
• C)equal to par value.
• D)constant over the life of the debt.
• E)set so it decreases as the bond approaches maturity.

---

Definitions:

Simplest Form

An expression or fraction that has been simplified to the point that it cannot be made any simpler, often by removing common factors.

Add Fractions

The process of combining two fractions with a common denominator to form a single fraction.

Simplest Form

Refers to the state of an algebraic expression when it has been reduced to the most basic or simplified version without changing its value.

Reciprocal

The inverse of a number or expression; for a nonzero number \(x\), its reciprocal is \(1/x\).