Question #79
Reading: Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers
PDF File: Reading 27 Valuation and Analysis of Bonds With Embedded Options - Anwers.pdf
Page: 36
Status: Unattempted
Question
Which of the following is equal to the value of the putable bond? The putable bond value is equal to the:
Answer Choices:
A. option-free bond value plus the value of the put option
B. callable bond plus the value of the put option
C. option-free bond value minus the value of the put option. Explanation The value of a putable bond can be expressed as Vputable = Vnonputable + Vput. (Module 27.1, LOS 27.b)
No explanation available for this question.