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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Physical harm or damage to the body caused by an external force, which can result in pain and dysfunction.

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Sounds that are out of the ordinary or unexpected in a particular setting, often indicating a problem or condition that requires attention.

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The internal emotional state or sensation experienced by an individual, often influenced by thoughts and external events.