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Question
Which one of the following statements is correct concerning a callable bond that is currently selling below face value? Assume there is no risk of default. Also assume the issuer only calls bonds when they can be refinanced at a lower rate of interest.A. The bond will most likely be called while the bonds are selling at a discount.
B. The yield-to-maturity is presently more relevant to an investor than the yield-to-call.
C. The bond is likely going to be called due to the low current interest rates.
D. The bond is currently paying a premium.
E. The bond issue will most likely be replaced with a new bond issue.
Answer
This answer is hidden. It contains 16 characters.
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