CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

With a fixed-rate bond, interest rate volatility affects its ______.

A. bond price
B. future coupon payments
C. principal payment
Correct Answer: A

Both B and C are fixed. However, with a floating-rate note, interest rate volatility affects future coupon payments.

User Contributed Comments 0

You need to log in first to add your comment.