A callable bond will typically have a yield than an otherwise identical bond without a call feature because .

Name: A callable bond will typically have a yield than an otherwise identical bond without a call feature because .
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A callable bond will typically have a higher yield than a non-callable bond because the issuer has the option to call the bond, which is valuable to the issuer and represents a risk to the bondholder. This risk requires compensation in the form of a higher yield.

A Callable Bond Will Typically Have a Yield Than an Otherwise