I am trying to synthesize everything I have learned about callable and putable bonds. Is the following information accurate?
- A callable bond bought at a discount will have yield rate greater than coupon rate. For a fixed redemption value, it will be redeemed as late as possible. Compared to an equivalent bond without a call, it will be priced the same.
- A callable bond bought at a premium will have yield rate lower than coupon rate. For a fixed redemption value, it will be redeemed as early as possible. Compared to an equivalent bond without a call, it will be priced lower.
- A putable bond bought at a discount will have yield rate higher than coupon rate. For a fixed redemption value, it will be redeemed as early as possible. Compared to an equivalent bond without a put, it will be priced higher.
- A putable bond bought at a premium will have yield rate lower than coupon rate. For a fixed redemption value, it will be redeemed as late as possible. Compared to an equivalent bond without a put, it will be priced the same.