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Basic Question 14 of 16
Bob buys a bond with a death put for $1,000. It matures in 10 years and pays a 5% coupon each year. Par value is $1,000. If Bob dies in year 2, while interest rates have spiked to 8% and the bond is now trading at $800, how much will Bob's estate get from the bond?
B. $1,000
C. not enough information
A. $800
B. $1,000
C. not enough information
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe fixed-income securities with embedded options;
CFA® 2025 Level II Curriculum, Volume 4, Module 28.