Which of the following statements is FALSE? A) A callable bond will trade at a lower price (and therefore a higher yield)than an otherwise equivalent non-callable bond.
B)The price of a callable bond can be low when yields are high, but does not rise above the call value when the yield is low.
C) Before the call date, investors anticipate the optimal strategy that the issuer will follow, and the bond price reflects this strategy.
D)The yield to maturity of a callable bond is calculated as if the bond were called at the earliest opportunity.

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.