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From the corporate perspective, callable bonds may have value over non-callable bonds because: the corporation has the option to control market interest rates. interest rates
From the corporate perspective, callable bonds may have value over non-callable bonds because:
the corporation has the option to control market interest rates. | ||
interest rates may rise prohibiting the holders from earning higher returns. | ||
call prices vary inversely with the interest rates. | ||
the corporation has the option to call the bond if interest rates fall. | ||
the corporation has the option to call the bond if interest rates rise. |
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