Question 13 Which of the following statements about embedded call options is most accurate？

A. The call price acts as a floor on the value of a callable bond.
B. The value of a callable bond is equal to the value of the straight bond component plus the value of the embedded call option.
C. When yields rise, the value of a callable bond may not fall as much as a similar, straight bond.
D. The value of a callable bond will always be equal to or greater than an otherwise identical non-callable bond.