Is an option-free bond’s price sensitivity positively correlated with the: Bond’s coupon rate Level of market interest rates（）
A: NO NO
B: NO YES
C: YES NO
A: NO NO
B: NO YES
C: YES NO
举一反三
- a bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in two years. At a market discount rate of 6%, the price of this bond per 100 of par value is closest to
- As the coupon rate of a bond increases, the bond's:() A: face value increases B: current price decreases C: interest payments increase D: maturity date is extended
- If market interest rates rise, the price of a callable bond, compared to an otherwise identical option-free bond, will most likely: () A: Increase by less than the option-free bond. B: Decrease by less than the option-free bond. C: Decrease by more than the option-free bond. D: Decrease by the same amount as the option-free bond.
- A bond with two years remaining until maturity offers a 3% coupon rate with interest paid annually. At a market discount rate of 4%, the price of this bond per 100 of par value is closest to: A: 95.34. B: 98.00. C: 98.11.
- A3-year bond offers a 10% coupon rate with interest paid annually. Assuming the following sequence of spot rates, the price of the bond is closest to: Time Spot Rates 1yesr 8.0% 2yesr 9.0% 3yesr 9.5% A: 96.98. B: 101.46. C: 102.95.