Suppose heinz is considering two issues of 20-year maturity


Suppose Heinz is considering two issues of 20-year maturity coupon bonds; one issue will be callable, the other not. For a given coupon rate, will the callable or noncallable bond sell at the higher price? If the bonds are both to be sold to the public at face value, which bond must have the higher coupon rate?

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Financial Management: Suppose heinz is considering two issues of 20-year maturity
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