In case of the lower coupon of a bond, features of such issue to account for such lower coupon bond. Introduction: There are a few definitions: A Callable bondis a bond which can be called any time from the investor. Sinking fund feature allows a company to retire bond of any amount at any value which is less than its par value or market value.

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Chapter 14, Problem 25PS

Summary Introduction

To identify:

In case of the lower coupon of a bond, features of such issue to account for such lower coupon bond.

Introduction:

There are a few definitions:

A Callable bondis a bond which can be called any time from the investor.

Sinking fund feature allows a company to retire bond of any amount at any value which is less than its par value or market value.

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