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A bondissuer is lending money; a bondholder is borrowing money.
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- When might a bondholder use a convertibility feature?. What is interest rate risk and what is the relation between interest rate risk and callable bonds. Explain with the help of an example of your own choice.What is interest rate risk, and how does it relate to callable bonds? Explain using an example of your own choosing.
- From Service Leader’s perspective, why are the bonds callable? What does that mean?What is a bond? What are some features of a bond? How do you value bonds? What factors can affect that value?The rate of interest actually earned by bondholders is called the Select one: O a. effective rate. O b. stated rate. O c. effective yield or market rate. O d. yield rate.