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Two bonds have identical times to maturity and coupon rates. One is callable at 115, the other at 110. Which should have the higher yield
Two bonds have identical times to maturity and coupon rates. One is callable at 115, the other at 110. Which should have the higher yield to maturity?
a.) The bond callable at 110 should have the higher yield to maturity.
b.) The bond callable at 115 should have the higher yield to maturity
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