Question: You consider two bonds ( A and B ) that are identical (same company, same maturity, same coupon, etc.). The only difference between the two
You consider two bonds ( A and B ) that are identical (same company, same maturity, same coupon, etc.). The only difference between the two is that Bond A is retractable (Callable). We can state that: expected return on Bond A is superior relative to the expected return on Bond B. The expected return on Bond A is inferior relative to the expected return on Bond B. The expected return on Bond A is equal to the expected return on Bond B. None of the answers is correct
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