A Callable Bond Will Typically Have a ________ Yield Than

question 99

Multiple Choice

A callable bond will typically have a ________ yield than an otherwise identical bond without a call feature because ________.

• A) lower, the firm loses flexibility with a callable bond
• B) higher, the firm loses flexibility with a callable bond
• C) lower, the option to call a bond is valuable
• D) higher, the option to call a bond is valuable

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Definitions:

Hypertrophy

The increase in size of an organ or tissue through the enlargement of its cells.

Skeletal Muscles

Muscles attached to bones by tendons that are responsible for the movement of the skeleton and thus the body.

Muscle Fibers

The elongated cells that makeup skeletal muscles, responsible for contracting to produce movement.

Involuntary Control

The automatic regulation of body functions, such as heart rate and digestion, that are not consciously controlled by the brain.