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Basic Question 3 of 14
When interest rates are high relative to a bond's coupon, the effective duration of a callable bond should be ______ that of an otherwise identical straight bond.
B. similar to
C. lower than
A. higher than
B. similar to
C. lower than
User Contributed Comments 1
| User | Comment |
|---|---|
| khalifa92 | tricky question to end this LOS, stay awake in the exam. |
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
compare effective convexities of callable, putable, and straight bonds;
CFA® 2026 Level II Curriculum, Volume 4, Module 28.