Do callable bonds have a higher or lower yield than otherwise identical bonds without a call feature?

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Do callable bonds have a higher or lower yield than otherwise identical bonds without a call feature? Why?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 21, 2024 10:00 AM

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Do bonds with a standard call feature have a higher or lower yield than otherwise identical bonds without a call feature? Why?
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Do callable bonds have a higher or lower yield than otherwise identical bonds without a call feature?

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Callable bonds typically offer a higher yield than otherwise identical bonds without a call feature ...View the full answer

Fundamentals Of Corporate Finance

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