Which of the following statements is correct? All else the same, an investor wil

Question

Which of the following statements is correct? All else the same, an investor will require less return to invest in a callable bond than one that is not callable. All else the same, an investor will require more return to invest in a callable bond than one that is not callable. The call feature does not impact the return that investors demand. We would need to know the current level of interest rates to answer this question. All else the same, an investor will require less return to invest in a callable bond than one that is not callable. All else the same, an investor will require more return to invest in a callable bond than one that is not callable. The call feature does not impact the return that investors demand. We would need to know the current level of interest rates to answer this question. All else the same, an investor will require less return to invest in a callable bond than one that is not callable. All else the same, an investor will require more return to invest in a callable bond than one that is not callable. The call feature does not impact the return that investors demand. We would need to know the current level of interest rates to answer this question.

Explanation / Answer

All else the same, an investor will require more return to invest in a callable bond than one that is not callable.

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