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Chapter 8Question 15 out of 5 pointsThe most common purchaser(s) of bonds are:
Question 25 out of 5 pointsWhich one of the following statements about vanilla bonds is false?
Question 35 out of 5 pointsWhich of the following statements is true about zero coupon bonds?
Question 45 out of 5 pointsWhich one of the following statements is true?Selected Answer:There is an inverse relation between bond prices and market interest rates.Answers:All else equal long-term bonds have lower price volatility than short-term bonds.There is an inverse relation between bond prices and market interest rates.All else equal short-term bonds are more risky than long-term bonds.All else equal US government bonds are more risky than corporate bonds.
Question 55 out of 5 pointsIf the bond's coupon rate is equal to the market rate then the bond will sell at a price
Question 65 out of 5 pointsBonds sell at a premium when the market rate of interest is:
Question 75 out of 5 pointsBonds sell at a discount when the market rate of interest is:
Question 85 out of 5 pointsWhen calculating the price of a bond that pays a semiannual coupon one needs toSelected Answer:all of the aboveAnswers:use double the number of years until maturity for the number of paymentsuse half the annual coupon paymentuse half the annual rate of return as the discount rateall of the above
Question 95 out of 5 pointsThe yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments

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