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What can you say about the yield to maturity on a callable bond compared to an...

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Finance

What can you say about the yield to maturity on a callable bondcompared to an otherwise identical straight bond? Why?

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3.6 Ratings (493 Votes)
The yield to maturity y of any bond and the bonds price are inversely related by means of the following equation Bond Price Bond Coupon x 1y x 111yBond Tenure Bond Par Value 1yBond Tenure    See Answer
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