Re: [Quantlib-dev] callable bonds

[John M. <jwm...@ya...>]

Allen-

     Maybe I'm missing something here, but wouldn't a 
callable fixed rate bond be similar to a convertible bond? 
All you have to do is make it a European option and then 
set the conversion ratio so small that it will never be
converted at the final time. 
     As for your bond spread issue, if you use a convertible 
bond then you can also alter the Black-Scholes process that 
goes into the bond to include zero curves.

John