Explain why the greater the assumed volatility, the lower the value of a callable bond?
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Explain why the greater the assumed volatility, the lower the value of a callable bond?
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The value of a callable bond is inversely related to the assumed volatility of interest rates This relationship arises due to the impact of interest r...View the full answer
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Related Book For
Introduction To Fixed Income Analytics
ISBN: 9780470572139
2nd Edition
Authors: Steven V. Mann, Frank J. Fabozzi
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