Which of the following statements regarding put and call features of bonds are TRUE?
The put feature would likely be exercised if interest rates fall.
The put feature would likely be exercised if interest rates rise.
The issuer will likely call bonds if interest rates fall.
The issuer will likely call bonds if interest rates rise.
A) II and III.
B) I and II.
C) I and IV.
D) III and IV.
Answer: A) II and III.