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    Exam 8: The Risk Structure of Interest Rates: Defaults, Prepayments, Taxes, and Other Rate-Determining Factors
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    While an Investor in Callable Bonds Does Not Know Exactly
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While an Investor in Callable Bonds Does Not Know Exactly

Question 53

Question 53

True/False

While an investor in callable bonds does not know exactly when his or her bonds will be called (if ever), he or she does know that the reinvestment rate will be at time of call because this is specified in the bond's indenture.

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