Which of the Following Is Not True Regarding Callable Bonds

question 117

Multiple Choice

Which of the following is not true regarding callable bonds?

• A)This feature allows the borrower to repay the bonds before their scheduled maturity date.
• B)This feature helps protect the borrower against future decreases in interest rates.
• C)Callable bonds benefit the bond investor.

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Definitions:

Advantaged Groups

Groups within a society or organization that enjoy more resources, rights, or privileges compared to other segments.

Commonalities

Traits, interests, or values that are shared between individuals or groups, leading to a sense of unity or agreement.

Power

The ability or capacity to influence or control the behavior of others, the course of events, or the distribution of resources.

Lower Status Rank

A position in a social hierarchy that has less prestige, authority, or influence than higher-ranked positions.