Callable bonds ________.

Name: Callable bonds ________.
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Question

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Callable bonds typically have a higher interest rate than similar non-callable bonds as they offer the issuer the flexibility to redeem the bonds early if interest rates decline, which can save them money in the long run. However, this higher interest rate comes at a cost to the investor as there is a risk of early redemption, which can result in a lower return than anticipated.

Callable Bonds ________