When a Callable Bond Sells at a Premium, the Likelihood

question 66

Multiple Choice

When a callable bond sells at a premium, the likelihood of a call is ________ and the yield to worst is the yield to ________.

• A) high, call
• B) low, call
• C) low, maturity
• D) high, maturity

---

Definitions:

Positive Sense

An optimistic or affirmative attitude or interpretation towards a situation or piece of information.

Treble Damages

A legal principle that allows a court to triple the amount of damages awarded to a plaintiff in order to punish the defendant for particularly harmful behavior.

Infringement

Unauthorized use or violation of someone else's rights or agreement.

Patent Act

Legislation governing the rights of inventors to protect their inventions through the grant of patents, detailing the process of obtaining and enforcing patent rights.