Which of the Following Statements Is FALSE

question 54

Multiple Choice

Which of the following statements is FALSE?

• A)When bond yields have increased,by exercising the call on the callable bond and then immediately refinancing,the issuer can lower its borrowing costs.
• B)To understand how call provisions affect the price of a bond,we first need to consider when an issuer will exercise its right to call the bond.
• C)If the call provision offers a cheaper way to retire the bonds the issuer will forgo the option of purchasing the bonds in the open market and call the bonds instead.
• D)An issuer can always retire one of its bonds early by repurchasing the bond in the open market.

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Definitions:

ATP

ATP, or adenosine triphosphate, is a molecule that transports chemical energy within cells for metabolism.

Endocrine Glands

Glands of the endocrine system that secrete their products, hormones, directly into the blood rather than through a duct.

Exocrine Glands

Glands that secrete their products into ducts that lead directly to the external environment.

Neuron Cells

Specialized cells of the nervous system that transmit electrical and chemical signals throughout the body, facilitating communication between the brain and other parts.