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An analyst stated that a callable bond has less reinvestment risk and more price appreciation potential...

An analyst stated that a callable bond has less reinvestment risk and more price appreciation potential than an otherwise identical noncallable bond. The analyst's statement most likely is :

a. incorrect with respect to both reinvestment risk and price appreciation potential

b. incorrect with respect to reinvestment risk but correct with respect to price appreciation model

c. correct with respect to reinvestment risk but incorrect with respect to price appreciation model.

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