Non-Callable Bonds

question 12

Multiple Choice

Non-callable bonds:

• A) have a callability risk attached to them
• B) are less desirable than callable bonds
• C) can be called prior to maturity if holders are given a 120-day notice
• D) will have a lower yield than identical callable bonds

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Definitions:

Adjustment Necessary

Indicates a need to modify financial statements or entries to reflect accurate and fair information.

Land Account

An account used in accounting to record the cost of land owned by a company, which is a non-depreciable asset.

Unamortized Patent

The portion of a patent's cost that has not yet been expensed through the process of amortization.

Adjustment Necessary

A correction or modification required to ensure accuracy, typically in the context of financial records or statements.