Question: Some bonds are issued with a call feature. A call feature seems to put the bond investor at a disadvantage. Explain by providing a

Some bonds are issued with a call feature. A call feature seems

Some bonds are issued with a call feature. A call feature seems to put the bond investor at a disadvantage. Explain by providing a numerical example to illustrate how bond investors would suffer less when bonds are called. (14 marks) [Total = 50 marks]

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