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A callable bond, a putable bond, and an option-free bond have the same coupon, maturity and rating. The call price and put price are 98 and 102 respectively. The option-free bond trades at par. Which of the following lists correctly orders the values of the three bonds from lowest to highest? A. Option-free bond, putable bond, callable bond. B. Callable bond, option-free bond, putable bond. C. Putable bond, option-free bond, callable bond. |