Callable bonds I) normally have a call protection period
II) frequently pay one year's coupon amount as the call premium
III) tend to be called only if market interest rates rise
IV) are preferred by investors over non-callable bonds

Question

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I) Callable bonds typically have a call protection period, which is a specified amount of time during which the issuer cannot redeem the bonds before maturity. This protects the bondholder from having the bond called away too soon. II) It's not common for callable bonds to pay one year's coupon amount as the call premium; the call premium varies and is specified in the bond's terms. III) Issuers tend to call bonds when market interest rates fall, not rise, so they can refinance at a lower interest rate. IV) Investors generally prefer non-callable bonds over callable bonds because they offer more certainty regarding cash flows and return, as they cannot be called away before maturity.

Callable Bonds I) Normally Have a Call Protection Period