When a bond has a call feature, the investor should consider the ________ when deciding whether to invest in the bond if it is not selling at par value.
A) convertibility provision
B) interest rate
C) yield to call
D) yield to maturity

Question

Quizplus · Accepted Answer

The yield to call is important for investors to consider when a bond has a call feature and is not selling at par value, as it calculates the return on the bond if it is called before its maturity date, providing a more accurate measure of potential investment outcomes.

When a Bond Has a Call Feature, the Investor Should