Two 20-year bonds are identical in all respects except that one allows the issuer to call the
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Two 20-year bonds are identical in all respects except that one allows the issuer to call the bond in return for $1,000 cash at any time after five years, while the other contains no call provisions. Will the yield to maturity on the two bonds differ? If so, which will be higher? Why?
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Analysis For Financial Management
ISBN: 9781260772364
13th Edition
Authors: Robert Higgins, Jennifer Koski, Todd Mitton
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