- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 28. Valuation and Analysis of Bonds with Embedded Options
- Subject 3. Valuation of Default-Free Callable and Putable Bonds
CFA Practice Question
As interest rate volatility goes up, which bond's value will remain relatively stable?
B. a putable bond
C. a straight bond
A. a callable bond
B. a putable bond
C. a straight bond
Correct Answer: C
The value of a straight bond remains constant regardless of interest rate volatility changes.
User Contributed Comments 0
You need to log in first to add your comment.