NO.PZ2016031001000026
问题如下:
Which of the following bond types provides the most benefit to a bondholder when bond prices are declining?
选项:
A.Callable
B.Plain vanilla
C.Multiple put
解释:
C is correct.
A putable bond is beneficial for the bondholder by guaranteeing a prespecified selling price at the redemption date, thus offering protection when interest rates rise and bond prices decline. Relative to a one-time put bond that incorporates a single sellback opportunity, a multiple put bond offers more frequent sell back opportunities, thus providing the most benefit to bondholders.
老师能解释一下选项A和B吗