The current yield goes up as the price of a bond falls.
举一反三
- A zero coupon bond is currently priced to yield 5.87 percent if held tomaturity 6.9 years from now. What is the current price of this bond if theface value is $1,000?
- A bond has a modified duration of 6 and a convexity of 62.5. What happens to the bond's price if interest rates rise 25 basis points It goes:（） A: down 1.46%. B: up 4.00%. C: up 1.46%.
- If interest rates and risk factors are constant over a given period, then a fixed income bond trading at a discount will have a:（） A: positive current yield, only. B: negative current yield and a positive capital gain yield. C: positive current yield and a positive capital gain yield.
- The current yield for a 4.5% coupon, 10-year bond, with a maturity par value of $100 and currently priced at $85.70 is closest to
- The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie A: rises. B: falls. C: does not change. D: might change but more information is needed.