Why is it difficult to value a callable bond

Reference no: EM131288683

Which of the following two bonds has greater reinvestment risk: a 10- year 8% coupon bond or a 25-year zero-coupon bond? Why? Why is it difficult to value a callable bond?SSS If a convertible bond has a value as a straight bond of $1,100 and a conversion value of $1,050, at what price will this bond trade? Why?

Reference no: EM131288683

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