Start learning →

Which ABS price moves less when interest rates change?

AFixed rate ABS
BFloating rate ABS
CZero coupon ABS
DBullet structure ABS
Answer & Solution
Correct answer: B. Floating rate ABS
The index on floaters adjusts to rate changes, so their prices fluctuate less than fixed rate ABS.
Practise this question with Quill — CA Final →

Keep practising Securitization

Browse all Securitization questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Securitization lesson →
Related questions