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Why a non-callable bond will typically command a lower price

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Reference no: EM132627550

Question 1: When a firm refunds a debt issue, the firm's stockholders lose and its bondholders gain. This points out the advantage of a call provision to bondholders and explains why a non-callable bond will typically command a lower price than an otherwise similar callable bond.

A. True

B. False

Reference no: EM132627550

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