The Value of a Callable Bond Equals the Value of a Straight

question 81

Multiple Choice

The value of a callable bond equals the value of a straight bond:

• A) plus the value of the bondholder's call option.
• B) minus the value of the bondholder's call option.
• C) plus the value of the issuer's call option.
• D) minus the value of the issuer's call option.

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