Which of the following statements about callable bonds is not true?
A) Callable bonds have higher yields than comparable noncallable bonds.
B) The call price is usually above the bond's par value.
C) The shorter the term to maturity, the greater the call interest premium.
D) Investors are notified when bonds are called.

Question

Quizplus · Accepted Answer

Callable bonds typically have a higher call interest premium the longer the term to maturity, not shorter.

Which of the Following Statements About Callable Bonds Is Not