Which of the following statements is TRUE for both callable and putable bonds()
A. The value of the bond is equal to the value of a similar straight bond plus the value of the option.
B. When yield volatility increases, the value of the option increases.
C. The options both benefit the bond issuer.
参考答案：B
解析：
To calculate the value of a putable bond, it is correct to add the option value to the value of a similar straight bond. However, to calculate the callable bond value, subtract the option value from that of a similar straight bond. As a result, when yield volatility increases (thus increasing the option value), the value of a callable bond decreases and the value of a putable bond increases. A call option does benefit the issuer, but a put option benefits the holder.