Question
Assuming interest rate volatility changes and the bond value assuming no default (VND) for a bond remains unchanged, the riskfree rate remains unchanged, and the
Assuming interest rate volatility changes and the bond value assuming no default (VND) for a bond remains unchanged, the riskfree rate remains unchanged, and the bond's credit valuation adjustment (CVA) increases, identify which of the following statements is correct regarding the bond's fair value, yield to maturity (YTM), and credit spread.\ Gruppo di scelte delle risposte\ \ Fair value goes up, YTM goes up, and the credit spread increases.\ \ Fair value goes down, YTM goes up, and the credit spread increases.\ \ Fair value goes down, YTM goes down, and the credit spread decreases.
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