Question: A callable bond is a bond that can be bought back by the bond issuer before maturity for some pre-specified price (normally a small amount

A callable bond is a bond that can be bought back by the bond issuer before for some pre-specified price (normally a small amount above face value) at the discretion of the bond issuer. How would you go about finding the value of such a bond? Would the bond be worth more or less than an equivalent non-callable bond?

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