Which of the following is not true regarding callable bonds?

Question

Quizplus · Accepted Answer

Callable bonds benefit the borrower (the issuer) by giving them the option to repay the bonds before the scheduled maturity date. This feature helps protect the borrower against future increases in interest rates. Option A is true, as callable bonds do give the borrower the option to repay the bonds before the scheduled maturity date. Option B is also true, as callable bonds protect the borrower against future decreases in interest rates. Option D is true, as a bond can have both callable and convertible features. Therefore, the only option that is not true is C, as callable bonds do not benefit the bond investor.

Which of the Following Is Not True Regarding Callable Bonds