Question

A callable bond:
would usually have a lower yield than a similar non-callable bond. />is attractive to the buyer because the immediate receipt of principal and premium usually produces a higher return.
is more apt to be called when interest rates are high because the interest savings will be greater.
generally has a higher credit rating than a similar non-callable bond.
is attractive to the issuer because it allows the issuer to prepay outstanding debt if new debt can be issued at lower rates.

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