Question: a. Explain the impact on the offering yield of adding a call feature to a proposed bond issue. b. Explain the impact on the bonds

a. Explain the impact on the offering yield of adding a call feature to a proposed bond issue.
b. Explain the impact on the bonds expected life of adding a call feature to a proposed bond issue.
c. Describe one advantage and one disadvantage of including callable bonds in a portfolio.

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a The call feature requires the firm to offer a higher coupon or higher promised yield to maturity o... View full answer

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