CFA Practice Question

CFA Practice Question

Which of the following is most likely correct?
A. An embedded option valuable to an bondholder would be Right to Call Bonds.
B. The clean price for a bond will be show less volatility compared to the dirty price during the time coupon payments are made.
C. The Term Structure of Interest Rates is a plot of yields of Treasury bonds of varying coupon rates.
Explanation: The Term Structure of Interest Rates is a plot of yields of Treasury bonds of varying maturities. An embedded option valuable to an bondholder would be Right to Put Bonds.

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