According to your expectation tradeoff you would be


You are considering an investment in 1 of 2 ten year bonds for an investment horizon of 3 years. The bonds are exactly the same, except one is callable and one has no embedded options. The callable bond has a slightly higher yield. You expect the level of interest rates to remain the same, however you foresee an increase in interest rate volatility. According to your expectation tradeoff you would be weighing in making your decision? Please explain.

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Financial Management: According to your expectation tradeoff you would be
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