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1.How do call features for bonds work? What increases the probability that a bond will be called in the future? 2.What is the difference between
1.How do call features for bonds work? What increases the probability that a bond will be called in the future?
2.What is the difference between the coupon rate on a bond and the yield to maturity? What changes over time with changing interest rates and other risks?
3.Explain the total return, the current yield, and the capital gains yield for a bond and how each is determined.
4.What is price risk for a bond? What is reinvestment risk for a bond? What bonds would have the most price risk? What bonds would have the least price risk?
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