no, because of the negative convexity in the callable bond, the callable bond is not as sensitive to price movements than an option free bond (at low yields).
shahravi123 - do you have the answers?
C, B, D and A(not 100% sure)
how about the puttable bond…if interest rates increase, the puttable bond would decrease more than the option free bond??? is this correct?
actually, the puttable bond would fall LESS than an option free bond. it has price compression at the higher yields, as this gives investors the option to sell the bond back to the issuer.