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Difference between bond with embedded call option vs callable bond

Hi everyone,

i'm at the Fixed Income chapter, and see this:

Price of callable bond = Price of option-free bond - Price of embedded call option

Just confused regarding the difference between callable bond and bond with embedded call option.

Is embedded call option, a bond option? whereby it is an option to buy the bond?
Or is it a bond that has an option for the issuer to call back the bond? if it's the latter, how is it different from callable bond?

Jolyn

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