(I)Callable bonds usually have a higher yield than comparable noncallable bonds.
(II)Convertible bonds are attractive to bondholders and sell for a higher price than comparable nonconvertible bonds.

Question

Quizplus · Accepted Answer

Callable bonds typically offer a higher yield to compensate investors for the risk of the bond being called away before maturity. Convertible bonds are attractive because they can be converted into a predetermined number of the issuer's shares, often making them more valuable than nonconvertible bonds.

(I)Callable Bonds Usually Have a Higher Yield Than Comparable Noncallable