Will the yield to maturity on the two bonds differ

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Reference no: EM131575408

Two 20-year bonds are identical in all respects except that one allows the issuer to call the bond in return for $1,000 cash at any time after five years while the other contains no call provisions. Will the yield to maturity on the two bonds differ? If so, which will be higher? Why?

Reference no: EM131575408

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