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Basic Question 2 of 4

The value of a straight bond is estimated to be $102. If an interest cap is added to the bond, and its value is estimated to be $3 by itself, the value of the capped floater is then:

A. $99
B. $102
C. $105

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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

Barnes

Learning Outcome Statements

calculate the value of a capped or floored floating-rate bond;

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