All else anyone equal, which of the following bonds issued by ABC Corporation will proffer the peak rate of re
All else being equal, which of the following bonds issued by ABC Corporation will proposal the highest rate of return?
a. A mortgage bond specifically not callable
b. A debenture bond that is not callable
c. A callable mortgage bond
d. A callable debenture
Answers: d. A callable debenture
Since its unsecured you've get credit risk. You have interest rate risk. And you've get an embedded give the name option. So I would influence its d.
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a. A mortgage bond specifically not callable
b. A debenture bond that is not callable
c. A callable mortgage bond
d. A callable debenture
Answers: d. A callable debenture
Since its unsecured you've get credit risk. You have interest rate risk. And you've get an embedded give the name option. So I would influence its d.