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The following chart is for questions on callable bonds. Price Value of the Embedded Call Option PV PV. Non-Callable Bond PV + Callable Bond A
The following chart is for questions on callable bonds. Price Value of the Embedded Call Option PV PV. Non-Callable Bond PV + Callable Bond A Curve A Curve Benchmark Yield Question: Why is the difference between Callable Bond and Non-Callable Bond narrow at high benchmark yield segments, but it becomes significantly wider at low benchmark yield segments
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