Which of the following statements regarding put and call features of municipal 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 III.
C) I and IV.
D) II and IV.
Answer: A) II and III.