Which of the following statements is CORRECT? a. A bond is likely to be called if it sells at a discount below par. b. A bond is likely to be called if it sells at a premium above par c. A bond is likely to be called if its market price is equal to its par value. d. A bond is likely to be called if its market price is below its par value.
Which of the following statements is CORRECT? a. A bond is likely to be called if it sells at a discount below par. b. A bond is likely to be called if it sells at a premium above par c. A bond is likely to be called if its market price is equal to its par value. d. A bond is likely to be called if its market price is below its par value.
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 15QTD
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Question
Which of the following statements is CORRECT?
a. |
A bond is likely to be called if it sells at a discount below par. |
b. |
A bond is likely to be called if it sells at a premium above par |
c. |
A bond is likely to be called if its market price is equal to its par value. |
d. |
A bond is likely to be called if its market price is below its par value. |
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