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

a. Explain the impact on the offering yield of adding a call feature to a proposed bond issue.
b. Explain the impact on both effective bond duration and convexity of adding a call feature to a proposed bond issue.

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a The call feature provides a valuable option to the issuer since it can buy back the bond a... View full answer

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