- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 28. Valuation and Analysis of Bonds with Embedded Options
- Subject 7. Valuation and Analysis of Capped and Floored Floating-Rate Bonds
CFA Practice Question
The value of a straight bond is estimated to be $102. If an interest cap is added to the bond, and its value is estimated to be $3 by itself, the value of the capped floater is then:
B. $102
C. $105
A. $99
B. $102
C. $105
Correct Answer: A
102 - 3 = 99
User Contributed Comments 0
You need to log in first to add your comment.