Which of the following statements is TRUE?
A. Companies are required by law to have their bonds rated by agencies such as Moody's or S&P.
B. The Fisher effect is the relationship between nominal returns, real returns, and inflation.
C. Investors require higher yields on secured bonds than on unsecured bonds.
D. A callable bond can be swapped for a fixed number of shares of stock before maturity at the holder's option.

Q&A Education