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Basic Question 0 of 5
When interest rates are low, the effective duration of a ______ bond is ______ than that of an otherwise comparable ______ bond.
B. putable, higher than, non-putable
C. callable, lower than, non-callable
A. putable, lower than, non-putable
B. putable, higher than, non-putable
C. callable, lower than, non-callable
User Contributed Comments 1
| User | Comment |
|---|---|
| khalifa92 | and lower if interest rates are high because the put option would be exercised. |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
explain how a bond's maturity, coupon, and yield level affect its interest rate risk;
CFA® 2024 Level I Curriculum, Volume 5, Module 46.