which one should have more yield - sinking fund provision or callable bond,as both have prepayment risk, also is sinking fund provision a type of amortizing security
I would say a callable bond… because a sinking fund sometimes is used to make sure that the borrower pays some of the money back to the investor (depending on the case this helps the investor) but if its an accelerated sinking fund I would assume yield would be very similar since an accelerated sinking fund works as a callable bond because of the option for the borrower to make greater payments.