Question: An analyst has compiled the following data about a bond that has an embedded call option and matures in 8 years: If an option pricing
An analyst has compiled the following data about a bond that has an embedded
call option and matures in years:
If an option pricing model determines that the value of the embedded call is
basis pointsyear the optionadjusted spread for the bond in basis pointsyear
is closest to:
A
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