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Basic Question 8 of 15
As interest rate volatility goes up, which bond's value will remain relatively stable?
B. a putable bond
C. a straight bond
A. a callable bond
B. a putable bond
C. a straight bond
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain how interest rate volatility affects the value of a callable or putable bond;
explain how changes in the level and shape of the yield curve affect the value of a callable or putable bond;
calculate the value of a callable or putable bond from an interest rate tree;
CFA® 2025 Level II Curriculum, Volume 4, Module 28.