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True/False/Uncertain. The company issued three corporate bonds, identical in all the respects except that one is a straight bond with no optionality, the other is
True/False/Uncertain. The company issued three corporate bonds, identical in all the respects except that one is a straight bond with no optionality, the other is callable, and the third one is putable. Generally, it should be the case that:
(a) putable bond has the highest market price, while callable bond has the lowest market price.
(b) the spread-to-Treasury for putable bond is the lowest, while the spread-to-Treasury for callable bond is the highest.
(c) the OAS spread is lowest for putable bond, and highest for callable bond.
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