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Other Things Held Constant, If a Bond Indenture Contains a Call

Question 7

Multiple Choice

Other things held constant, if a bond indenture contains a call provision, the yield to maturity (YTM) on the bond that would exist without such a call provision will be _____ the YTM with the call provision. 


A) higher than
B) lower than
C) the same as
D) moving with
E) unrelated to

Correct Answer:

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