Question #58
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: 17
Status: Unattempted
Question
Joseph Dentice, CFA is evaluating three bonds. All three bonds have a coupon rate of 3%, maturity of five years and are generally identical in every respect except that bond A is an option-free bond, bond B is callable in two years and bond C is putable in two years. If interest rates increase, the duration of which bond is most likely to decrease?
Answer Choices:
B. Bond
C. Bond B
No explanation available for this question.