问题如下：
If the Brown and Company forecast comes true, which of the following is most likely to occur? The value of the embedded option in:
选项：
A.Bond 3 decreases.
B.Bond 4 decreases.
C.both Bond 3 and Bond 4 increases.
解释：
A is correct.
All else being equal, the value of a put option decreases as the yield curve moves from being upward sloping to flat to downward sloping (inverted). Alternatively, a call option’s value increases as the yield curve flattens and increases further if the yield curve inverts. Therefore, if the yield curve became inverted, the value of the embedded option in Bond 3 (putable) would decrease and the value of the embedded option in Bond 4 (Callable) would increase.
yield curve invert是指收益率曲线凸度改变吗？能否就本题贴一图示？不是很能理解题干的意思
