Question
Consider several bonds for investment: a) a noncallable bond currently priced at par, b) a callable bond currently priced at par, a noncallable bond currently
Consider several bonds for investment: a) a noncallable bond currently priced at par, b) a callable bond currently priced at par, a noncallable bond currently price at a significant discount to par. You expect the yield curve to shift down dramatically. Which bond to you want to own?
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ISE Analysis For Financial Management
Authors: Robert C. Higgins Professor, Jennifer Koski
13th International Edition
1265042632, 9781265042639
