A callable bond with coupon rate of 9% pa has a maturity period of 15 years. The market interest rate is 4% pa (after the deferred call period of 4 years). After 4 years,

• A. The investor can calculate the yield to maturity with a discount rate of 9%.
• B. The value of the bond goes down because the market interest rate has decreased.
• C. The bond is likely to be recalled and the investor has a yield to call.
• D. This bond will now have a coupon rate of 4% to match the market interest rate.

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