If interest rates rise, a firm may retire a bond issue by
1) calling it
2) repurchasing it
3) issuing new bonds and redeeming the old bonds
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) only 2
Correct Answer:
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Q4: Since bonds pay a fixed amount of
Q5: The current yield and yield to maturity
Q6: The price of a bond depends on
1)
Q7: If interest rates in general fall,
A) the
Q8: Bonds only sell for a discount when
Q10: The yield to maturity may differ from
Q11: Bonds never sell for a premium over
Q12: The yield to maturity on a bond
Q13: Which of the following is not true
Q14: The current yield considers not only the
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