Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) The yield to call (YTC) is the annual yield of a callable bond assuming that the bond is called at the earliest opportunity.
B) Because the price of a callable bond is higher than the price of an otherwise identical non-callable bond, the yield to maturity of a callable bond will be lower than the yield to maturity for its non-callable counterpart.
C) The assumption that underlies the yield calculation of a callable bond-that it will not be called-is not always realistic, so bond traders often quote the yield to call.
D) We can think of the yield to maturity of a callable bond as the interest rate the bondholder receives if the bond is not called and repaid in full.