This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- That callable bonds benefit the issuer, especially in a falling interest rate environment, and typically come with a higher coupon to compensate investors for call risk.

- How to calculate the yield to call (YTC) and why it's the relevant yield to quote for a premium bond, representing the 'yield to worst'.

- That puttable bonds benefit the investor, particularly when interest rates are rising, and therefore offer a lower coupon.

- How to determine a convertible bond's conversion ratio by dividing the par value by the conversion price.

- How to calculate the parity price of both the stock and the bond to identify potential arbitrage opportunities.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep