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提问人:网友cl18507496603 发布时间:2022-01-07
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Lei Lee makes the following statement about putable bonds: As yields rise, the price of

putable bonds will fall more quickly than comparable option-free bonds (beyond a critical point) due to the decline in value of the embedded put option. Meimei Han adds that as yields fall, the price of putable bonds will climb more quickly than comparable option-free bonds (beyond a critical point) due to the increase in value of the embedded put option. Are their statements about putable bonds correct?

A. Neither statement is correct.

B. Both statements are correct.

C. Only one of the statements is correct.

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