Disposition effects than on bonds without callable provision

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Reference no: EM132029006

Given disposition effects,

How would changes in the interest rate for bonds be different than for any other investments? That is, would a bond buyer be more likely to hold or sell when interest rates move in the opposite direction than the bond investor expects.

Do you believe callable bonds are more conducive to disposition effects than on bonds without the callable provision? Explain.

Reference no: EM132029006

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