Practice Quiz

FINRA Series 7

Category - Series 7

Start a Study Session Sign up for Question of the Day
Assuming all of the following bonds from the same issuer are callable now, which one would most likely get called first?
  1. 8% maturing 1-15-2016
  2. 8% maturing 1-15-2007
  3. 4% maturing 1-15-2012
  4. 4% maturing 1-15-2007
Explanation
Answer: A - 8% maturing 1-15-2016. Bonds with the highest coupon rates would be the first to most likely get called. The issuer will look to issue new debt at a lower rate. Since there are two 8% bonds, the one that would most likely get called are those with the longest maturity.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz