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12) Consider callable and convertible bonds. How would their bond prices compare to a standard bond? For example, if Bond A was a standard bond,
12) Consider callable and convertible bonds. How would their bond prices compare to a standard bond? For example, if Bond A was a standard bond, paying a coupon payment every 6 months for its duration, how would Bond B, a bond of the same coupon payment and maturity but callable, and Bond C, a bond of the same coupon payment and maturity but convertible, price relative to Bond A? If I had a callable Bond D, which is a zero coupon bond but the same maturity as Bond B, which is more likely to be called first and why?
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