A callable bond gives the issuer the right to redeem the bond before maturity. How does this feature typically affect the bond's yield compared to a non-callable bond with identical characteristics?
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A
Callable bonds offer lower yields to compensate for call risk
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B
Callable bonds offer higher yields to compensate investors for call risk
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C
Callable bonds offer the same yield because call risk is negligible
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D
Callable bonds offer lower yields because they are less risky for investors