- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 29. The Arbitrage-Free Valuation Framework
- Subject 5. The Monte Carlo Method
CFA Practice Question
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.
Correct Answer: A
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