CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Which type of bonds offers a higher yield than otherwise similar plain vanilla bonds?
A. Callable bonds
B. Putable bonds
C. Convertible bonds
Explanation: Both put options and convertible options favor bondholders.

User Contributed Comments 1

User Comment
jjhigdon Callable feature is disadvantageous to the bond holders, so they have to offer higher yields than otherwise similar vanilla bonds - otherwise who would in their right mind buy them?
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