A Callable Bond Will Typically Have A(n)________ Yield Than an Otherwise

Multiple Choice

A callable bond will typically have a(n) ________ yield than an otherwise identical bond without a call feature because ________.

A) lower,the firm loses flexibility with a callable bond
B) higher,the firm loses flexibility with a callable bond
C) lower,the option to call a bond is valuable
D) higher,the option to call a bond is valuable
E) identical,the call feature is without value