Understanding Callable Bonds and Their Yields

When evaluating fixed income securities, one important characteristic to consider is whether the bond is callable or non-callable. A callable bond gives the issuer the right to redeem the bond before its maturity date, usually at a specified call price. This feature can have implications for both issuers and investors, particularly concerning interest rate movements and reinvestment risk.

Suppose you are a financial analyst assessing a callable bond relative to a non-callable bond with similar features. You aim to understand how the callable feature impacts the bond's price and yield, especially in changing interest rate environments. Based on this context, which of the following statements about callable bonds is most accurate?