Assuming no change in the credit risk of a bond, the presence of an embedded put option:
Question:
Assuming no change in the credit risk of a bond, the presence of an embedded put option:
A. Reduces the effective duration of the bond.
B. Increases the effective duration of the bond.
C. Does not change the effective duration of the bond.
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B Increases the effective duration of the bond An embedded ...View the full answer
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