If you buy a callable bond and interest rates decline, will the value of your bond rise by as much as it would have risen if the bond had not been callable? Explain. (2) Question 3 (5 marks) Indicate whether each of the following actions will increase or decrease a bond's YTM. 3.1) a bond's price increase (1) 3.2) The company's bonds are downgraded by rating agencies. (1) 3.3) A change in the bankruptcy code makes it more difficult for bondholders to receive payments in the event a firm declares bankruptcy. (1) 3.4) Economy enters a recession. (1) 3.5) The bonds become subordinated to another debt issue. (1)