问题
单项选择题
Which of the following statements about the relationship between the value of a callable bond, the value of an option-free bond, and the value of the embedded call option is TRUE（）
A. Value of a callable bond=present value of the interest payments +present value of the principal at maturity.
B. Value of a callable bond=value of an option-free bond + value of an embedded call option.
C. Value of a callable bond=value of an option-free bond-value of an embedded call option.
答案
参考答案：C
解析：
Because the bondholder has given something of value to the issue of a callable bond, the value of the embedded call option should be subtracted from the value of the straight bond.