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.
D)A bond can be both callable and convertible.

Question

Quizplus · Accepted Answer

Callable bonds benefit the borrower, not the bond investor, as they give the borrower the option to repay the bonds before their scheduled maturity date. A, B, and D are all true statements regarding callable bonds.

Which of the Following Is Not True Regarding Callable Bonds