Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) The assumption that underlies the yield calculation of a callable bond-that it will not be called-is not always realistic, so bond traders often quote the yield to call.
• B) The yield to call (YTC) is the annual yield of a callable bond assuming that the bond is called at the earliest opportunity.
• C) We can think of the yield to maturity of a callable bond as the interest rate the bondholder receives if the bond is not called and repaid in full.
• D) Because the price of a callable bond is higher than the price of an otherwise identical non-callable bond, the yield to maturity of a callable bond will be lower than the yield to maturity for its non-callable counterpart.

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Definitions:

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Alfred Adler

An Austrian psychologist and founder of Adlerian psychology, emphasizing the importance of feelings of inferiority and social interest.

Person-centered

An approach to therapy and care that emphasizes the importance of considering the individual's personal feelings, thoughts, and experiences.

Subjective Point of View

An individual’s personal perspective, influenced by their feelings, beliefs, and experiences, rather than objective facts.