An
upward-sloping yield curve ________
A: may
be an indication that interest rates are expected to increase.
B: may
incorporate a liquidity premium.
C: may
reflect the confounding of the liquidity premium with interest rate
expectations.
D: All
of the options are correct.
E: None
of the options are correct.
upward-sloping yield curve ________
A: may
be an indication that interest rates are expected to increase.
B: may
incorporate a liquidity premium.
C: may
reflect the confounding of the liquidity premium with interest rate
expectations.
D: All
of the options are correct.
E: None
of the options are correct.
举一反三
- According<br/>to the expectations hypothesis, an upward-sloping yield curve implies<br/>that ________ A: interest<br/>rates are expected to remain stable in the future. B: interest<br/>rates are expected to decline in the future. C: interest<br/>rates are expected to increase in the future. D: interest<br/>rates are expected to decline first, then increase. E: interest<br/>rates are expected to increase first, then decrease.
- Ceteris<br/>paribus, the duration of a bond is positively correlated with the<br/>bond's ________ A: time<br/>to maturity. B: coupon<br/>rate. C: yield<br/>to maturity. D: All<br/>of the options are correct. E: None<br/>of the options are correct.
- A<br/>coupon bond that pays interest annually is selling at a par value of<br/>$1,000, matures in five years, and has a coupon rate of 9%. The yield<br/>to maturity on this bond is ________ A: 8.0%. B: 8.3%. C: 9.0%. D: 10.0%. E: None<br/>of the options are correct.
- Ceteris<br/>paribus, the duration of a bond is negatively correlated with the<br/>bond's ________ A: time<br/>to maturity. B: coupon<br/>rate. C: yield<br/>to maturity. D: coupon<br/>rate and yield to maturity. E: None<br/>of the options are correct.
- A<br/>coupon bond that pays interest semi-annually has a par value of<br/>$1,000, matures in seven years, and has a yield to maturity of 11%.<br/>The intrinsic value of the bond today will be ________ if the<br/>coupon rate is 8.8%. A: $922.78 B: $894.51 C: $1,075.80 D: $1,077.20 E: None<br/>of the options are correct.