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Basic Question 1 of 5
A change in the assumed interest rate volatility can cause the change in the fair value of a corporate bond when:
II. there are embedded options.
III. there is credit risk.
I. there are coupons.
II. there are embedded options.
III. there is credit risk.
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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
calculate the value of a bond and its credit spread, given assumptions about the credit risk parameters;
CFA® 2025 Level II Curriculum, Volume 4, Module 29.