Asked Jan 14, 2020

Suppose that a bond has an 8% coupon, a 6% YTM, and a 4% YTC and is callable in 3 years. For this bond issue, investors would expect the bonds

A. Not to be called and earn the YTM

B. Not to be called and earn the YTC

C. To be called and earn the YTM

D. To be called and earn the YTC


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