WarrenB1

bpdolog: i thought so too but it looks like principal and interest can be held off from the supports. the original sentence in the first post is from schweser.

elcfa: i think thats what i meant. yield changes affect both callable and noncallable bonds, but the yield change for a callable bond is exacerbated by the affect of the volatility of the option, which makes the yield change greater for callable bonds.