Question: 4. Which of the following will decrease the price of a callable bond? A. Increase in call price B. Increase in risk-free rate C. Increase

4. Which of the following will decrease the price of a callable bond? A. Increase in call price B. Increase in risk-free rate C. Increase in coupon rate D. Increase in the value of d and decrease in the value ofu in the binomial model

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