Securities with embedded options:
a. often have higher yields than comparable Treasury securities.
b. generally have no prepayment risk.
c. are always free of default risk.
d. all of the above.
e. a. and b. only
Answer: A
a. often have higher yields than comparable Treasury securities.
b. generally have no prepayment risk.
c. are always free of default risk.
d. all of the above.
e. a. and b. only
Answer: A