Which Bond Provision Would Be Considered the Most Risky for an Investor

question 12

Multiple Choice

Which bond provision would be considered the most risky for an investor who is concerned that market interest rates will drop dramatically over the life of the bond?

• A) sinking fund
• B) deferred call
• C) freely callable
• D) non-callable
• E) none of the above

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Definitions:

Internalized Conscience

The internalized set of moral values, principles, and norms that guide an individual's ethical behavior and decision-making processes.

Socially Responsive

Exhibiting behaviors that are sensitive, adaptive, and appropriately responsive to social situations or interactions.

Prosocial Behavior

Actions intended to benefit others, including behaviors like helping, sharing, donating, co-operating, and volunteering.

Constructive Actions

Behaviors or actions taken with the intention of creating positive outcomes or contributing to problem-solving.