Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)Before the call date,investors anticipate the optimal strategy that the issuer will follow,and the bond price reflects this strategy.
• B)The yield to maturity of a callable bond is calculated as if the bond were called at the earliest opportunity.
• C)A callable bond will trade at a lower price (and therefore a higher yield)than an otherwise equivalent non-callable bond.
• D)The price of a callable bond can be low when yields are high,but does not rise above the call value when the yield is low.

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Definitions:

Electrical Resistance

A measure of the opposition to the flow of electric current through a conductor, resulting in electrical energy being converted into heat.

Ohms

The unit of electrical resistance, representing the resistance between two points of a conductor when a voltage of one volt produces a current of one ampere.

Circuit Protection

Devices such as fuses, fuse links, and circuit breakers in an electrical circuit that stop the flow of electricity in the event that a fault occurs in the circuit. These help to protect people from injury and prevent damage to the vehicle’s electrical system.

Fuse Links

Safety devices in electrical systems that melt and break the circuit when current exceeds a certain level, preventing overheating.