A ________ bond generally has an interest rate that is higher than a similar risk ________ bonds, and a ________ bond generally has an interest rate that is lower than a similar risk ________ bond.

Question

Quizplus · Accepted Answer

Callable bonds generally have higher interest rates than non-callable bonds because they carry the risk of being called before maturity. Convertible bonds typically have lower interest rates than non-convertible bonds because they offer the option to convert into equity.

A ________ Bond Generally Has an Interest Rate That Is