NO.PZ2023090201000005
问题如下：
Compared with an option-free bond, which of the following bonds is most likely to trade at a lower price?
选项：
A.Convertible bond B.Putable bond C.Callable bond解释：
A is incorrect because a convertible bond benefits bondholders as it gives them the right to convert the bonds into the issuer’s common stock. All else being equal, the price of a convertible bond will be higher than the price of an otherwise identical non-convertible bond.
B is incorrect because a putable bond benefits bondholders as it gives them the right to sell the bonds back to the issuer before the maturity date. All else being equal, the price of a putable bond will be higher than the price of an otherwise identical non-putable bond.
C is correct. A callable bond benefits the issuer because it gives the issuer the right to redeem all (or part) of the bonds before the maturity date. Thus, the price of a callable bond will typically be lower than the price of an otherwise identical non-callable bond.
A is incorrect because a convertible bond benefits bondholders as it gives them the right to convert the bonds into the issuer’s common stock. All else being equal, the price of a convertible bond will be higher than the price of an otherwise identical non-convertible bond.
B is incorrect because a putable bond benefits bondholders as it gives them the right to sell the bonds back to the issuer before the maturity date. All else being equal, the price of a putable bond will be higher than the price of an otherwise identical non-putable bond.
C is correct. A callable bond benefits the issuer because it gives the issuer the right to redeem all (or part) of the bonds before the maturity date. Thus, the price of a callable bond will typically be lower than the price of an otherwise identical non-callable bond.