A callable bond will have a lower value than a straight bond with the same coupon rate and maturity.

Name: A callable bond will have a lower value than a straight bond with the same coupon rate and maturity.
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Quizplus · Accepted Answer

This is true because a callable bond gives the issuer the right to redeem the bond before its maturity, which can result in lower returns for the bondholder. As a result, callable bonds typically trade at a discount to straight bonds to compensate for this risk.

A Callable Bond Will Have a Lower Value Than a Straight