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Suppose there are three coupon bonds, one is a callable bond, one is a puttable bond, and the third is a straight bond. Except for
Suppose there are three coupon bonds, one is a callable bond, one is a puttable bond, and the third is a straight bond. Except for the embedded option part, they are exactly the same.
- Which bond should be the most expensive?
- Which one should be the least expensive?
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
