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Question 330 - CTFA discussion

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The call-option value of a callable bond is likely to be high when:

A.
Interest rates are volatile
Answers
A.
Interest rates are volatile
B.
Interest rates are low and expected to remain low
Answers
B.
Interest rates are low and expected to remain low
C.
Interest rate are high and expected to remain high
Answers
C.
Interest rate are high and expected to remain high
D.
Markets are inefficient
Answers
D.
Markets are inefficient
Suggested answer: A
asked 16/09/2024
Mark Josef Delos Santos
32 questions
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