Mhw11
Question6  Single Correct
1.0 Point
The yield to maturity for a perpetuity is a useful approximation for the yield to maturity on long
term coupon bonds. It is called the ________ when approximating the yield for a coupon bond.
A current yield
B star yield
C future yield
D discount yield
A CURRENT YIELD IS
C/P
WHICH HAPPENS TO BE THE YTM FOR A
CONSOL/PERPETUITY (SORT OF JUST A COINCIDENCE) – POINT, KNOW THE
FORMULA FOR CURR YIELD.
KNOW THE FORMULA FOR YIELD ON CONSOL
Question11  Single Correct
1.0 Point
Economists consider the ________ to be the most accurate measure of interest rates.
A real interest rate.
B yield to maturity.
C simple interest rate.
D current yield.
B YTM (AKA APR)
Question13  Single Correct
1.0 Point
The interest rate on Treasury Inflation Protected Securities is a direct measure of
A the nominal interest rate.
B the real interest rate.
C the rate of deflation.
D the rate of inflation.
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 Fall '10
 CarlShuMingLin
 Inflation, Single Correct

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