Compared with other bonds, callable bonds usually have

Name: Compared with other bonds, callable bonds usually have
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

Callable bonds usually have a higher yield compared to other bonds as they offer the issuer the option to call back the bond before maturity, which increases the risk for the bondholder. This higher yield compensates for the risk taken on by the bondholder. Less liquidity, a higher price, and low tax payments are not characteristic features of callable bonds.

Compared with Other Bonds, Callable Bonds Usually Have