Everything else equal,the interest rate required on a callable bond will be less than the interest rate on a convertible bond.

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Callable bonds typically offer higher interest rates than convertible bonds to compensate investors for the risk that the issuer may redeem the bond before maturity. Convertible bonds, offering the option to convert into equity, can have lower interest rates due to their additional value from the conversion feature.

Everything Else Equal,the Interest Rate Required on a Callable Bond