this is unacceptable… after not including a single word about removing/adding callability with swaptions, etc, or using swaps to manage dual currency bonds… we face questions about this in their exams (see 2nd exam, pm session, volume 2)
its in there and its in the CFAI. too add callability, i believ you purchase a reciever swaption. To remove callability you sell a receiver swaption. can anyone verify?
to remove callability you buy a recevier swaption. That way, when your bond gets called you can use the swaptoin to receive fixed payments.