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Basic Question 1 of 5
A change in the assumed interest rate volatility can cause the change in the fair value of a corporate bond when:
II. there are embedded options.
III. there is credit risk.
I. there are coupons.
II. there are embedded options.
III. there is credit risk.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!

Barnes
Learning Outcome Statements
calculate the value of a bond and its credit spread, given assumptions about the credit risk parameters;
CFA® 2025 Level II Curriculum, Volume 4, Module 29.