🏦LTB
SIE: Risk & Portfolio Management
SIE practice questionmediumCall risk

Which bondholder is most exposed to call risk?

  1. AA holder of a long-term, non-callable corporate bond
  2. BA holder of a callable corporate bond✓ Correct answer
  3. CA holder of a floating-rate bond
  4. DA holder of Treasury bills
Explanation

Why BA holder of a callable corporate bond

Callable bonds can be redeemed by issuers before maturity, creating call risk. Non-callable, floating-rate, and Treasury bills lack this feature.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Related Risk & Portfolio Management questions