Question: How does the price-yield relationship for a callable bond compare to the same relationship for an option-free bond? The price-yield relationship is best described as

How does the price-yield relationship for a callable bond compare to the same relationship for an option-free bond? The price-yield relationship is best described as exhibiting: negative convexity at low yields for the callable bond and positive convexity for the option-free bond the same convexity for both bond types negative convexity for the callable bond and positive convexity for an option- free bond

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