Callable Bonds Two bonds are identical except one is callable and the other is no callable. Compared to the no callable bond the callable bond hasa. Negative convexity and a lower price.b. Negative convexity and a higher price.c. Positive convexity and a lower price.d. Positive convexity and a higher price.Convexity What does positive convexity on a bond imply?a. The direction of change in yield is directly related to the change in price.b. Prices increase at a faster rate as yields drop than they decrease as yields rise.c. Price changes are the same for both increases and decreases in yields.d. Prices increase and decrease at a faster rate than the change in yield.