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标题: Reading 64: Understanding Yield Spreads-LOS g 习题精选 [打印本页]

作者: 1215 时间: 2011-3-30 14:57 标题: [2011]Session15-Reading 64: Understanding Yield Spreads-LOS g 习题精选

Session 15: Fixed Income: Basic Concepts
Reading 64: Understanding Yield Spreads

LOS g: Identify how embedded options affect yield spreads.

As compared to an equivalent noncallable bond, a callable bond’s yield should be:

A)
the same.

B)
lower.

C)
higher.

A callable bond favors the issuer. Hence, the value of the bond is discounted by the value of the option, which means the yield will be higher.

作者: 1215 时间: 2011-3-30 14:59

As compared to an equivalent nonputable bond, a putable bond’s yield should be:

A)
the same.

B)
higher.

C)
lower.

A putable bond favors the buyer (investor). Hence, a premium will be paid for the option, which means the yield will be lower.

作者: gaoflex 时间: 2011-10-18 09:10

thank you.

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