A bond with a 12 percent coupon, 10 years to maturity and selling at 88 has a YTM of:()
A. between 10% and 12%.
B. between 13% and 14%.
C. over 14%.
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All else held equal, the duration of bonds selling at higher yields compared to bonds selling at lower yields will be:()
A. greater.
B. lower.
C. equal.
Which of the following approaches in measuring interest rate risk is most accurate when properly performed()
A. Duration/convexity approach.
B. Full Valuation approach.
C. Duration approach.
Which of the following bonds has the shortest duration A bond with a:()
A. 20-year maturity, 6 percent coupon rate.
B. 10-year maturity, 6 percent coupon rate.
C. 10-year maturity, 10 percent coupon rate.
An 11 percent coupon bond with annual payments and 10 years to maturity is callable in 3 years at a call price of $1100. If the bond is selling today for 975, the yield to call is:()
A. 14.97%.
B. 10.26%.
C. 10.00%.