Exam 18: The Analysis and Valuation of Bonds

Consider a bond with a duration of 8 years having a yield to maturity of 8% and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?

(Multiple Choice)

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Question 101

If the price before yields changed was $925, what is the resulting price?

(Multiple Choice)

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Question 102

For a bond the present value model incorporates both the coupon receipts and the capital gain or loss.

(True/False)

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Question 103

According to the expectations hypothesis a rising yield curve indicates that investors expect

(Multiple Choice)

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Question 104

When there are no embedded options, ____ duration can be used to provide an approximation of the interest rate sensitivity of the bond.

(Multiple Choice)

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Question 105

____ measures the expected rate of return of a bond assuming that you sell it prior to its maturity.

(Multiple Choice)

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Question 106

According to the segmented market hypothesis, yields for a particular maturity segment depend on supply and demand within the maturity segment.

(True/False)

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Question 107

The lower a bond's yield to maturity, the greater its duration.

(True/False)

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Question 108

Showing 101 - 108 of 108

Consider a bond with a duration of 8 years having a yield to maturity of 8% and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?

If the price before yields changed was $925, what is the resulting price?

For a bond the present value model incorporates both the coupon receipts and the capital gain or loss.

According to the expectations hypothesis a rising yield curve indicates that investors expect

When there are no embedded options, ____ duration can be used to provide an approximation of the interest rate sensitivity of the bond.

____ measures the expected rate of return of a bond assuming that you sell it prior to its maturity.

According to the segmented market hypothesis, yields for a particular maturity segment depend on supply and demand within the maturity segment.

The lower a bond's yield to maturity, the greater its duration.

The Investment Setting

The Asset Allocation Decision

Selecting Investments in a Global Market

Organization and Functioning of Securities Markets

Security-Market Indexes

Efficient Capital Markets

An Introduction to Portfolio Management

An Introduction to Asset Pricing Models

Multifactor Models of Risk and Return

Analysis of Financial Statements

Introduction to Security Valuation

Macroanalysis and Microvaluation of the Stock Market

Industry Analysis

Company Analysis and Stock Valuation

Technical Analysis

Equity Portfolio Management Strategies

Bond Fundamentals

Bond Portfolio Management Strategies

An Introduction to Derivative Markets and Securities

Forward and Futures Contracts

Option Contracts

Swap Contracts, Convertible Securities, and Other Embedded Derivatives

Professional Money Management, Alternative Assets, and Industry Ethics

Evaluation of Portfolio Performance

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