2. Mr. Wall is a little confused over the relationship between the embedded option and the callable...

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2. Mr. Wall is a little confused over the relationship between the embedded option and the callable bond. How does the value of the embedded call option change when interest rate volatility increases?

a. It increases.

b. It may increase or decrease.

c. It decreases.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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