Alex Smith, is considering an investment in a corporate bond, or a callable corporate bond. He

has asked you to explain each and how they differ. Assume: Par=$1,000, Coupon Rate=4%, Market

Rate=3%, Remaining Term=9yrs, Remaining Term to Call=4yrs, typical call premium applies

Provide a write up comparing and contrasting the different bond types

Under the assumption that Joe is very risk averse, make a recommendation, with support