54、A portfolio of option-free bonds is least likely to be exposed to: A. volatility risk. B. yield curve risk. C. interest rate risk. D. reinvestment risk.
Correct answer = A
"Risks Associated with Investing in Bonds," Frank J. Fabozzi
2008 Modular Level I, Vol. 5, p. 284
Study Session 15-63-a
explain the risks associated with investing in bonds
Volatility risk is the risk that the price of a bond with an embedded option will decline when expected yield volatility changes. By definition, option-free bonds are not affected by volatility risk. | 
发表于 2008-6-3 17:29
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