True or False - With respect to interest rates, callable bonds would normally have higher interest rates than non-callable bonds.

Callable bonds typically offer higher interest rates than non-callable bonds due to the additional risk they present to investors. When a bond is callable, the issuer has the option to redeem it before its maturity date, usually when interest rates decline. This means that if interest rates fall, the issuer can refinance their debt at a lower cost, while investors are left with a bond that may be called away from them before they fully benefit from the higher interest payments they were receiving.

Investors require compensation for taking this risk, which is reflected in the higher interest rates that callable bonds pay compared to non-callable bonds. Thus, the correct conclusion is that callable bonds generally have higher interest rates to offset the potential disadvantage of being called early, making the statement true.