Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 10 of 15
The value of a callable bond will rise if:
II. The level of interest rates declines.
III. The shape of the yield curve becomes more upward sloping.
I. The volatility of interest rates goes down.
II. The level of interest rates declines.
III. The shape of the yield curve becomes more upward sloping.
User Contributed Comments 0
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.
Lina
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.