When the Actual Exposure Doubles (For Example from 10 MAs

question 84

Multiple Choice

When the actual exposure doubles (for example from 10 mAs to 20 mAs) ,the log relative exposure increases by

• A)0.2
• B)0.3
• C)2
• D)3

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Definitions:

Bond A

A type of fixed-income investment representing a loan made by an investor to a borrower, typically corporate or governmental.

Bond B

An investment product representing a loan made by an investor to a borrower, typically corporate or governmental, with specific terms for interest payments and principal return.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date.

Bond B

A reference to a specific bond investment, often denoted for classification or tracking purposes.