Which of the following statements is true about an investor in a callable bond that is sold

at a discount?

Possible Answers

Since the investor's loss at redemption is $C-P,$ an early redemption date is a

disadvantage to the investor

Since the investor's loss at redemption is $C-P,$ a late redemption date is a

disadvantage to the investor

Since the investor's gain at redemption is $C-P,$ a late redemption date is a

disadvantage to the investor

Since the investor's gain at redemption is $C-P,$ an early redemption date is a

disadvantage to the investor

None of the above.