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The diagram below depicts the price of callable bonds (PCB) and non-callable bonds (PNCB). Explain what the diagram shows and provide the rationale for the

The diagram below depicts the price of callable bonds (PCB) and non-callable bonds (PNCB). Explain what the diagram shows and provide the rationale for the differences in prices of the two instruments. If an intermediary purchased a callable bond, what risk would it face?

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