The type of bond with an embedded option that would most likely sell at a lower price

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The type of bond with an embedded option that would most likely sell at a lower price than an otherwise similar bond without the embedded option is a:

A. Putable bond.

B. Callable bond.

C. Convertible bond.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:17 AM

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The type of bond with an embedded option that would most likely sell at a lower price

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B is correct The call provision is an option that benefits the issuer Because of this cal...View the full answer

Fixed Income Analysis

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