All else the same, which of the following bonds will have the highest yield-to-maturity?

Question

Quizplus · Accepted Answer

Callable bonds typically offer higher yields than putable bonds to compensate investors for the risk that the bond might be called away before maturity. Among bonds with the same rating, the callable bond will have a higher yield-to-maturity than the putable bond. Therefore, between A (Callable, A rating) and C (Callable, AA rating), the A-rated callable bond will have a higher yield due to its lower credit quality compared to the AA-rated bond.

All Else the Same, Which of the Following Bonds Will