8．The risk investors have that a callable bond will be called when interest rates fall is Call risk. ( )
举一反三
- Call provisions will be exercised when interest rates _________ and bond values _________. A: rise; rise B: fall; rise C: rise; fall D: fall; fall
- The spread between the interest rates on bonds with default risk and default-free bonds is called the risk premium.
- The interest rate risk of a fixed-rate bond with an embedded call option is best measured by:
- Effective duration is essential to measuring interest rate risk of a bond with an embedded call option because:
- Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may _________ if the _________ effect is more than offset by changes in income, the price level, and expected inflation. A: fall; liquidity B: fall; risk C: rise; liquidity D: rise; risk