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Basic Question 10 of 13

Other things being equal, the increase of interest rate volatility will cause the increase of ______.

A. The value of a callable bond
B. The value of a putable bond
C. The OAS for a callable bond

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

explain the calculation and use of option-adjusted spreads;

explain how interest rate volatility affects option-adjusted spreads;

CFA® 2025 Level II Curriculum, Volume 4, Module 28.