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Subject: Financial Markets (Managerial accounting) Topic: Fixed Income 1. What market condition will the holder of call option or put option exercise their right? 2.Explain

Subject: Financial Markets (Managerial accounting)

Topic: Fixed Income

1. What market condition will the holder of call option or put option exercise their right?

2.Explain how an increase in expected interest rate volatility can decrease the value of a callable bond?

3.Why do the prices of fixed-rate bonds fall if expectations for inflation rise?

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