qbank #97988 (callable bonds) false, following, change, levels

btcapital

which of the following is false?
A.) the value of a callable bond equals the value of a vanilla bond + the option value.
B.) the value of a callable bond is less than the value of a vanilla bond in an amount equal to the value of the call option.
C.) when yields rise, the value of a callable bond may exhibit less of a price change than a vanilla bond.
correct answer: A
agreed, but this implies that C.) is TRUE. i don’t get that, it’s true for a _putable_ bond. at high yield levels the callable bond should behave the same as a vanilla bond, should it not? a callable bond exhibits less price sensitivity at small (not high) yield levels.
can someone please clarify?
cheers