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CTFL-AT_UK Braindumps VCE
  • Exam Code: CTFL-AT_UK
  • Exam Name: ISTQB Certified Tester - Foundation Level Extension - Agile Tester (UK only)

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NEW QUESTION: 1
A multinational bank just bought two bonds each worth $10,000. One of the bonds pays a fixed interest of 5% semi-annually and the other pays LIBOR semi-annually. The six month LIBOR is at 5% currently. The risk manager of the bank is concerned about the sensitivity to interest rates. Which of the following statements are true?
A. Both bond prices are equally sensitive to interest rates.
B. The price of the bond paying floating interest is more sensitive to interest rates than the bond paying fixed interest.
C. The given information is not enough to determine the sensitivity of the bond prices.
D. The price of the bond paying fixed interest is more sensitive to interest rates than the bond paying floating interest.
Answer: D

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