Question #38
Reading: Reading 27 Valuation and Analysis of Bonds With Embedded Options
PDF File: Reading 27 Valuation and Analysis of Bonds With Embedded Options.pdf
Page: 10
Status: Correct
Correct Answer: A
Question
For an option-free bond trading at par, it is least likely that:
Answer Choices:
A. The spot rate for the maturity of the bond is least important rate affecting the value of the bond
B. The rate durations for all the rates other than the maturity-matched rate are zero
C. Its maturity key rate duration is the same as its effective duration
No explanation available for this question.