A bond with a call feature would pay a slightly higher interest rate than the same bond without this feature.

Name: A bond with a call feature would pay a slightly higher interest rate than the same bond without this feature.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A bond with a call feature gives the issuer the right to recall the bond before its maturity date, which presents some risk to the investor. To compensate for this risk, the bond with a call feature offers a slightly higher interest rate than the same bond without this feature.

A Bond with a Call Feature Would Pay a Slightly