Chapter 9 test

Answered 0 of 25Pass mark 60%

Question 1 of 25

When is an issuer most likely to exercise the call option on a callable bond, and what risk does the investor then face?

When market interest rates rise; the investor faces default riskWhen the issuer's credit rating is downgraded; the investor faces spread riskWhen market interest rates fall; the investor faces reinvestment riskAt any time; the investor faces exchange rate risk

Practice questions are based on the NISM Series X-A workbook (February 2025), updated for later SEBI/RBI changes up to November 2026. Always check the latest NISM syllabus before your exam. Video lessons on YouTube ↗