问题
单项选择题
If interest rates fall, the:（）
A. callable bond’s price rises faster than that of a noncallable but otherwise identical bond.
B. callable bond’s price rises more slowly than that of a noncallable but otherwise identical bond.
C. value of call option embedded in the callable bond fails.
答案
参考答案：B
解析：
When a callable bond’s yield falls to a certain point, the price will increase at a decreasing rate as the yields continue to fall. Compare this to a noncallable bond where, as the yield falls the price rises at an increasing rate.