Quiz Ch 07 – T/F Callable Bonds and Yield to Maturity in Upward Sloping Yield Curve
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: A bond that can be called before its stated maturity carries the possibility of early redemption. Consequently, under an upward-sloping yield curve, a callable bond already in existence generally offers a lower yield to maturity than an otherwise similar noncallable bond.