单选题 Holding all other factors constant, an increase in yield volatility will cause the price of a (n) :

A、

A. callable bond to increase.
B、

B. puttable bond to incnease.
C、

C. Embedded call option to decrease.

【正确答案】 B

【答案解析】Increasing yield volatility increases the value of both put options and call options, which increases the value of a putable bond but decreases the value of a callable bond.