a bond that is callable has a chance of being retired earlier than its stated term to maturity. therefore, if the yield curve is upward sloping, an outstanding callable bond should have a lower yield to maturity than an otherwise identical noncallable bond. a bond that is callable has a chance of being retired earlier than its stated term to maturity. therefore, if the yield curve is upward sloping, an outstanding callable bond should have a lower yield to maturity than an otherwise identical noncallable bond. false true