A: down 1.46%.
B: up 4.00%.
C: up 1.46%.
举一反三
- The duration of a ten - year, 10 percent coupon bond when the interest rate is 10 percent is 6.76 years. What happens to the price of the bond if the interest rate falls to 8 percent?
- The current yield goes up as the price of a bond falls.
- 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 five-year bond with a yield of 11% (annually compounded) pays an 8% coupon at the end of each year. What is the bond's modified duration?( ) A: 3.982 B: 4.256 C: 3.843
- Call provisions will be exercised when interest rates _________ and bond values _________. A: rise; rise B: fall; rise C: rise; fall D: fall; fall
内容
- 0
The interest rate risk of a fixed-rate bond with an embedded call option is best measured by: A: Effective duration B: Modified duration C: Macaulay duration
- 1
If the interest rates on all bonds rise from 5 to 6 percent over the course of the year, which bond would you prefer to have been holding?
- 2
Which type of bond most likely earns interest on an implied basis? A: Floater B: Conventional bond C: Pure discount bond
- 3
When the interest rate on a bond is below the equilibrium interest rate, there is excess _________ in the bond market and the interest rate will _________ A: demand; rise B: demand; fall C: supply; fall D: supply; rise
- 4
When the interest rate on a bond is above the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________. A: demand; rise B: demand; fall C: supply; fall D: supply; rise