CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

The value of a callable bond will rise if:

I. The volatility of interest rates goes down.
II. The level of interest rates declines.
III. The shape of the yield curve becomes more upward sloping.
Correct Answer: I, II and III

III: The value of a call option decrease as the yield curve becomes more upward sloping. Other things being equal, the value of the callable bond will increase.

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