interest rates & call option prices...

hi all, just a quick question to see if anyone else noticed this. in reading 63, p.267, it states that as interest rates DECLINE, price of an option bond increases; the price of the embedded call option in a callable bond also increases because the call option is more valuable to the issuer however, in book 6 on p.115 (reading 73), it states that when interest rates are HIGHER, call option prices are HIGHER and put option prices are lower. am i mis-interpreting the readings or is this contradicting?? please help! =) thanks in advance

Have a look at this previous post http://www.analystforum.com/phorums/read.php?11,705818,705830#msg-705830