Which of the following statements is most correct? The interest rate on a new is

Question

Which of the following statements is most correct? The interest rate on a new issue of callable bonds is likely to exceed that on a similar new issue of noocallable bonds. The interest rate on a new issue of noncallable bonds ts hkety to exceed that on a simitar new issue of callable bonds. Noncallable bonds are nskier to the investor wtnlc callable bonds arc nskier >>o the issuer. There is no difference in risk to the investor between similar callable and noncallable bonds. The interest rate on a new issue of callable bonds is likety to be equal to that on a simitar new issue of noncallable bonds.

Explanation / Answer

Teh following statement is most correct ,

There is no difference in risk to the investor betweeen similar callable and noncallable bonds .

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