If interest rates fall, will the price of noncallable bonds move up higher than that of callable

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If interest rates fall, will the price of noncallable bonds move up higher than that of callable bonds? Why or why not?

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Aug 28, 2014 10:19 AM

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If interest rates fall, will the price of noncallable bonds move up higher than that of callable

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As the interest rate falls the call option on the callable bonds is more likely to be exercised ...View the full answer

Corporate Finance

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