Which of the following statements regarding municipal bonds with call provisions are TRUE?
Call provisions are advantageous to the issuer.
Call provisions are advantageous to the investor.
Bonds are likely to be called in a falling interest rate environment.
Bonds are likely to be called in a rising interest rate environment.
A) I and III.
B) I and IV.
C) II and III.
D) II and IV.
Answer: A) I and III.