(B) From the issuer's perspectives, explain the relationship between call risk premiums and the level of interest rates in the economy. (6 Marks) On June 1, 1989, a bond portfolio manager is evaluating the following data concerning 3 bonds held in portfolio Change in Market Price Bond Rating Coupon Maturity Call Price (Date) Market YTM Modified Price Duration X AA 0% 8/14/2014 Noncall 59.44 10.25% 5.2 years Y AA 14% 3/30/2018 Noncall 116.60 11.00% 5.2 years Z AA 10.25% 7/15/2017 100 (6/1/2010) 98.63 10.50% 5.2 years +5.1% +5.5% +2.4% It is noted that all 3 bonds have the same modified duration and thus are expected to rise in price by 5.2% for a 100 basis point decline in interest rates. However, the data from the above table shows that a different change in price occurs for each bond