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For a callable bond, the borrower can choose to pay back the principle earlier. For a puttable bond, the investor can demand the principle to
For a callable bond, the borrower can choose to pay back the principle earlier. For a puttable bond, the investor can demand the principle to be paid back earlier. How do the prices of a callable and a puttable bond compare to that of a regular bond with same maturity and coupon rate? A. The callable bond is more expensive; the puttable bond is more expensive B. The callable bond is less expensive; the puttable bond is more expensive C. The callable bond is more expensive; the puttable bond is less expensive D. The callable bond is less expensive; the puttable bond is less expensive
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