Correct answer = A
"Risks Associated with Investing in Bonds," Frank J. Fabozzi
2008 Modular Level I, Vol. 5, p. 284
Study Session 15-63-n
explain how yield volatility affects the price of a bond with an embedded option and how changes in volatility affect the value of a callable bond and a putable bond
Increasing yield volatility increases the value of both put options and call options, which increases the value of a putable bond but decreases the value of a callable bond.
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发表于 2008-5-22 22:58
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