Question: Please indicate whether the following statements are true or false. Explain why. A bond that is callable has a chance of being retired earlier than

Please indicate whether the following statements are true or false. Explain why.

A bond that is callable has a chance of being retired earlier than its stated term to maturity. A callable bond may benefit or hurt bond investors. Therefore, an outstanding callable bond may have a lower or higher yield to maturity than an otherwise identical regular bond.

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