Question: Which bond is least likely to experience the highest increase in value, given a parallel downward shift of 1 5 0 bps in the yield
Which bond is least likely to experience the highest increase in value, given a parallel downward shift of bps in the yield curve?
Bond X: a year option free bond.
Bond Y a year callable bond.
Bond Z a year putable bond.
Question options:
Bond X
Bond Y
Bond Z
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