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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 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
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.