- CFA Exams
- CFA Level I Exam
- Study Session 13. Fixed Income (2)
- Reading 34. Valuation and Analysis of Bonds with Embedded Options
- Subject 7. Valuation and Analysis of Capped and Floored Floating-Rate Bonds
CFA Practice Question
A capped floater protects the ______ against ______ interest rates.
B. investor; falling
C. issuer; falling
A. issuer; rising
B. investor; falling
C. issuer; falling
Correct Answer: A
It is an issuer option.
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