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Basic Question 1 of 4
Monte Carlo methods are often used to value bonds:
B. When future interest rates are unknown.
C. When there is infinite number of possible paths.
A. When a security's cash flows are path dependent.
B. When future interest rates are unknown.
C. When there is infinite number of possible paths.
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You have a wonderful website and definitely should take some credit for your members' outstanding grades.

Colin Sampaleanu
Learning Outcome Statements
describe a Monte Carlo forward-rate simulation and its application.
CFA® 2025 Level II Curriculum, Volume 4, Module 27.