medium · Debt Capital Markets
An analyst calculates that a 100 bp drop in rates would cause a bullet bond's price to rise by 8.5%. For a callable version of the same bond trading at a premium, the price rise would likely be:
- Less than 8.5%
- Exactly 8.5%
- More than 8.5%
- A price decrease, due to the call becoming active.
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More Debt Capital Markets practice
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