CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

Which bond is most likely the ideal instrument for an investor in a rising interest rate scenario?

A. a fixed-coupon bond
B. a capped floater
C. a floored floater
Correct Answer: C

A fixed-coupon bond is not recommendable because its price will fall. A capped floater will cap the coupon rate so it is not idea either.

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