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?
举一反三
- If you expect the inflation rate to be 15 percent next year and a one - year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is _________
- If interest rates are expected to rise in the future, the demand for long-term bonds _____ and the demand curve shifts to the _____.
- 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?
- Which of the following is true of mortgage interest rates? A: Mortgage rates are closely tied to Treasury bond rates, but mortgage rates tend to stay below Treasury rates because mortgages are secured with collateral. B: Longer-term mortgages have higher interest rates than shorter-term mortgages. C: Interest rates are higher on mortgage loans on which lenders charge points. D: All of the above are true. E: Only A and B of the above are true.
- Call provisions will be exercised when interest rates _________ and bond values _________. A: rise; rise B: fall; rise C: rise; fall D: fall; fall