Chartered Financial Analyst Level 2
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The OAS of a callable bond is 75 basis points in a zero volatility environment. As interest rate volatility increases, the bond's OAS most likely:
The OAS of a callable bond is 75 basis points in a zero volatility environment. As interest rate volatility increases, the bond's OAS most likely:
Exam-Like
A
decreases.
B
remains the same.
C
increases.
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