csorensen
csorensen
30.09.2019 • 
Business

Which of the following statements is correct? a. corporate treasurers dislike issuing callable bonds because these bonds may require the company to raise additional funds earlier than would be true if noncallable bonds with the same maturity were used. b. the actual life of a callable bond will always be equal to or less than the actual life of a noncallable bond with the same maturity. therefore, if the yield curve is upward sloping, the required rate of return will be lower on the callable bond. c. a callable 10-year, 10% bond should sell at a higher price than an otherwise similar noncallable bond. d. two bonds have the same maturity and the same coupon rate. however, one is callable and the other is not. the difference in prices between the bonds will be greater if the current market interest rate is below the coupon rate than if it is above the coupon rate. e. two bonds have the same maturity and the same coupon rate. however, one is callable and the other is not. the difference in prices between the bonds will be greater if the current market interest rate is above the coupon rate than if it is below the coupon rate.

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