If a Bond Has a Make-Whole Call Provision,the

question 1

Multiple Choice

If a bond has a make-whole call provision,the:

• A)call premium can be either positive or negative.
• B)bond's market price will always equal its face value.
• C)bondholder will receive the face value amount plus interest if the bond is called.
• D)bondholder will receive the face value amount minus any interest paid to date if the bond is called.
• E)call price will increase as interest rates decrease.

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Definitions:

National Income

The total value of all goods and services produced by a country over a specific period, accounting for income earned domestically and abroad.

Labor Force

All the members of a particular organization or population who are able to work, viewed collectively.

Unionized

Describes a workplace or workforce that is represented by one or more labor unions, which negotiate wages, work rules, and working conditions.

Strike

An action of unionized employees in which they (1) discontinue working for the employer and (2) take steps to prevent other potential workers from offering their services to the employer.