Valid CFA-Level-I Dumps shared by ExamDiscuss.com for Helping Passing CFA-Level-I Exam! ExamDiscuss.com now offer the newest CFA-Level-I exam dumps, the ExamDiscuss.com CFA-Level-I exam questions have been updated and answers have been corrected get the newest ExamDiscuss.com CFA-Level-I dumps with Test Engine here:
A municipal bond is callable beginning with the fifth coupon date. The call price schedule specifies call prices that decline with each passing coupon payment date from 107% of par to 100% of par on the maturity date. I). The call provision makes the timing of the promised cash flows uncertain II). The call provision makes the size of the promised cash flows uncertain III). The call provision makes the tax status of the interest payments uncertain
Correct Answer: A
For a callable bond, the maturity date is at the bond issuer's discretion. The timing of the call, if it occurs, will determine the size of the terminal cash flow.