CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

At 15% interest rate volatility the OAS for a callable bond is 20 bps. Which one is the MOST LIKELY OAS at 10% interest rate volatility?

A. 15 bps
B. 20 bps
C. 25 bps
Correct Answer: C

As interest rate volatility decreases, the OAS for a callable bond increase.

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