Consider the following two statements about put-able bonds: Statement 1: As yields fall, the price of put-able bonds will rise less quickly than similar option-free bonds (beyond a critical point) due to the decrease in value of the embedded put option. Statement 2: As yields rise, the price of put-able bonds will fall more quickly than similar option-free bonds (beyond a critical point) due to the increase in value of the embedded put option. You should:()
A. agree with statement 1 and disagree with statement 2.
B. agree with statement 1 and agree with statement 2.
C. disagree with statement 1 and disagree with statement 2.