单项选择题

If interest rates fall, the:（）

A. callable bond’s price rises faster than that of a noncallable but otherwise identical bond.
B. callable bond’s price rises more slowly than that of a noncallable but otherwise identical bond.
C. value of call option embedded in the callable bond fails.

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热门试题

单项选择题How does the price-yield relationship for a callable bond compare to the same relationship for an option-free bond The price-yield relationship is:（）

A. concave for low yields for the callable bond and always convex for the option-free bond.
B. concave for an option-free bond and convex for a callable bond.
C. concave for the callable bond and convex for an option-free bond.

单项选择题For which of the following securities is estimating the future cash flows least difficult（）

A. 5-year, 6% bond with two years of call protection.
B. 3-year note with a coupon of Libor + 100 basis points.
C. 8% preferred stock with mandatory redemption in five years.