赞题库-背景图
单项选择题

Use the following information for Questions.
Peter is considering two bonds:
Bond A yield 10%
Bond B yield 7 % Simone Girard, CFA candidate, is studying yield volatility and the value of callable bonds. She has the following information: a callable bond with a call option value calculated at 1.25 (prices are quoted as a percent of par) and a straight bond similar in all other aspects priced at 98.5. Girard also wants to determine how the bond’s value will change if yield volatility increases. Which of the following choices is closest to what Girard calculates as the value for the callable bond and correctly describes the bond’s price behavior as yield volatility increases

A. 97.25, price increases.
B. 99.75, price decreases.
C. 97.25, price decreases.
<上一题 目录 下一题>
热门试题

单项选择题Which of the following statements about different types of bonds is least likely correct

A. Municipal bonds are traded primarily on the New York Stock Exchange.
B. Tax-backed bonds are backed by the full faith and credit of the issuer’s entire taxing power.
C. Government-sponsored enterprises issue securities directly in the marketplace, but federally related institutions generally do not.

单项选择题Which of the following statements about how the features of a bond impact interest rate risk is FALSE

A. Bond price movements depend upon the direction and magnitude of changes in interest rates.
B. All else equal, a longer-term bond is more sensitive to interest rates than a shorter-term bond.
C. An inverse relationship between interest rates and bond prices means that the greater the change in interest rates, the less the change in fixed-coupon bond prices.