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- Topic: CFA Level 2 - Callable Bond Values
| Author | Topic: CFA Level 2 - Callable Bond Values |
|---|---|
| octavianus @2008-05-25 18:28:28 |
Does anyone know how to value call prices for bonds with embedded options? This comes from Study Session 14.C.b. in the notes. I know how to value the option free bond values at each node, but the call values at each node is a mystery. The one review question in the study notes provides one call price of 100 in the question, but not the second of 99.755. How do you calculate 99.755? |
CFA Discussion Topic: CFA Level 2 - Callable Bond Values
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
