Among following statements, which one does not correspond to the nominal (periodical annual) interest rate?

It is a contractual rate. It has no value on its own. Its value depends on the frequency of its capitalization. It is capitalized quarterly for the mortgages in Canada.

You consider two bonds (A and B) that are identical (same company, same maturity, same coupon, etc.). The only difference between the two is that Bond A is retractable (Callable). We can state that:

expected return on Bond A is superior relative to the expected return on Bond B. The expected return on Bond A is inferior relative to the expected return on Bond B. The expected return on Bond A is equal to the expected return on Bond B. None of the answers is correct.