Question #80
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
As the volatility of interest rates increases, the value of a putable bond will:
Answer Choices:
A. rise
B. rise if the interest rate is below the coupon rate, and fall if the interest rate is above the coupon rate
C. decline
No explanation available for this question.