If interest rates decline significantly, the values of callable bonds will not rise by as much as
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If interest rates decline significantly, the values of callable bonds will not rise by as much as those of bonds without the call provision. It is likely that the bonds would be called by the issuer before maturity, so that the issuer can take advantage of the new, lower rates.
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Financial Management Theory And Practice
ISBN: 9780324259681
11th Edition
Authors: Eugene F Brigham, Michael C Ehrhardt
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