Can someone verify (maybe there is some literature around) the following relationships?
- Callable Bond= Long on Bond + short on a Call Position -->
PV(CallableBond) = PV(Bond) - Call on Bond?
or state differently:
PV(Bond) - PV(Callable Bond) = Call on Bond?
- Since a Receiver Swaption equals a Call on a Bond following should be true?
PV(Bond) - PV(Callable Bond) = ReceiverSwaption?
Maybe someone can provide me with some literature regarding this Topic.