CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

Two bonds have identical characteristics, except that Bond A is opton-free and Bond B is putable at par starting in 2 years. Bond A is selling for $107 right now. The LEAST LIKELY price for Bond B is:

A. $103
B. $107
C. $110
Correct Answer: A

Since Bond B is a putable bond, its price should be higher.

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