Warrants are considered to highly speculative because when

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Reference no: EM13621153

1. When should an investor calculate both yield to maturity and yield to call?

A. Whenever there is a call provision

B. When the sum of the present values of the interest payments exceeds the call price

C. When the market price is greater than or equal to the call price

D. Whenever the funds can be reinvested

E. When interest rates increase above the coupon rate

2. Warrants are considered to highly speculative because:

A. they are attached to the bond issue

B. they have a short life and their value is magnified by movements in the stock price

C. the intrinsic value is highly volatile

D. ownership of warrnats provides no dividends or interest

Reference no: EM13621153

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