CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

The value of a putble 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.
A. I and II
B. II and III
C. I, II and III
Explanation: I. the value of put option will decline.

II. The value will rise but not as much as a straight bond.

III. the value of put option will increase.

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