标题: another fixed income.. [打印本页] 作者: prav_Cfa7 时间: 2013-4-10 02:53 标题: another fixed income..
compared to option free bond a callable bond has more
interest rate risk? reinvestment risk?
i said no yes…since IR risk measures duration and callable has lower duration i.e when rates rise callable doesnt fall AS MUCH as option free
concur??作者: Siddimaula 时间: 2013-4-10 03:00
i think no yes作者: homie 时间: 2013-4-10 03:15
I put No yes作者: needhelp1700 时间: 2013-4-10 03:30
I picked Yes, Yes…. it has lower duration cause it has positive convexity, but in essence positive convexity at low yield is more interest rate risk (ie. price doesn’t go up when interest rate drop)?
This is not the case?作者: HuskyGrad2010 时间: 2013-4-10 03:45
price doesn’t go up when interest rate drop – This means less sensitive not more.
