Part 1 Consider a callable bond and a similar bond that is not callable. Is the callable bond more valuable to the issuer or the bondholder than the non-callable bond, and why? More valuable to the issuer, since the issuer can re-fund (pay off and reissue) the bond when interest rates have fallen More valuable to the bondholder, since the bondholder can return the bond when interest rates have risen More valuable to the issuer, since the issuer can re-fund (pay off and reissue) the bond when interest rates have risen More valuable to the bondholder, since the bondholder can return the bond when interest rates have fallen