A portfolio of option-free bonds is least likely t
A portfolio of option-free bonds is least likely to be exposed to:
A.yield curve risk.
B.volatility risk.
C.reinvestment risk
参考解答
4j8***101
2024-11-14 18:08:26
Ans:B;
Volatility risk is present for fixed-income securities that have embedded options. Changes in interest rate volatility affect the value of the embedded options and thus affect the values of securities with embedded options. By definition, option-free bonds are not affected by volatility risk.
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