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Two bonds are identical in every sense, except one bond is is callable while the other is not. Which bond will have a higher bond
Two bonds are identical in every sense, except one bond is is callable while the other is not. Which bond will have a higher bond price?
a. The callable bond will have a higher price
b. The non-callable bond will have a higher price
c. The two bonds will have the same price
Why is B the answer. Please explain. Thank you.
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