CHAPTER 14
Bond Prices and Yields
14-1
14.1 Bond Characteristics
Bonds are debt. Issuers are borrowers and
holders are creditors.
The indenture is the contract between the
issuer and the bondholder.
The indenture gives the coupon rate, maturity
date,
Appendix 1
HONG KONG SHUE YAN UNIVERSITY
PLAGIARISM & ACADEMIC MISCONDUCT POLICY
OBJECT
The obj ect of the Plagiarism and Academic Misconduct Policy is to promote an educational
environment where academic honesty and fairness are valued as promoting perso
548 PA R T I V Fixed-Income Securities
Convexity allows us to improve the duration approximation for bond price C
Accounting for convexity, Equation 16.3 can be modified as follow
A: : D*Ay + 1/5 X Convexity >< (r5302
P (16.5)
The first term on the righth
CHAPTER 16
Managing Bond Portfolios
16-1
16.1 Bond Pricing Relationships
Bond prices and yields are inversely related.
An increase in a bonds yield to maturity
results in a smaller price decline than the
gain associated with a decrease in yield of
equa
Hong Kong Shue Yan University
FIN243 Money and Banking
Exercise (Chapter 1 - 3)
Name:_Student No._ Section No.:_
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Financial markets promote economic e
HONG KONG SHUE YAN UNIVERSITY
Department of Economics and Finance
BA (Hons) in Economics and Finance
(Winter 2015)
Course Title
Course Code
Year of Study
Number of Credits
Duration in Weeks
Contact Hours Per Week
Pre-requisite Course(s)
:
:
:
:
:
:
Money
Chapter 26 Transmission Mechanism of Monetary Policy
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Economic theory suggests that _ interest rates are _ important than _ interest rates in
explaini
Chapter 24 Monetary Policy Theory
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Policy makers cannot achieve both price stability and economic activity stability when facing
A) demand shocks.
B)
Chapter 23 Aggregate Demand and Supply Analysis
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The aggregate demand curve is the total quantity of an economy's
A) final goods and services demanded
Chapter 20 Quantity Theory, Inflation, and the Demand for Money
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) If the money supply is $500 and nominal income is $3,000, the velocity of money is
A)
FIN243 Money and Banking
Chapter 19 The International Financial System
MULTIPLE CHOICE.
Choose the one alternative that best completes the statement or answers the question.
1) The Policy Trilemma states that a country or a monetary union can't pursue the
FIN243 Money and Banking
Chapter 15 The Money Supply Process
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The three players in the money supply process include
A) banks, depositors, and the cent
21/4/2015
Chapter 11 Banking and the Management of Financial
Institutions Question 25 (p.293)
Suppose that you are the manager of a bank that has $15 million of
fixed-rate assets, $30 million of rate-sensitive assets, $25 million of
fixed-rate liabilities
Chapter 14 Central Banks: A Global Perspective
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) What makes the Federal Reserve so unique compared to other central banks around the world is its
A) re
FIN243 Money and Banking
Chapter 11 Banking and the Management of Financial Institutions
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Bank capital is equal to _ minus _.
A) total assets; total l
Chapter 4
Individual and
Market Demand
Chapter Outline
The Effects of Changes in the Price
The Effects of Changes in Income
The Income and Substitution Effects of a Price Change
Consumer Responsiveness to Changes in Price
Market Demand: Aggregating Indivi
Econ 203 Quiz 2
Submit them in groups.
1. Two firms (Firm 1 and Firm 2) selling a homogenous good face the market demand
curve P = 400 2Q, where Q = Q1 + Q2, P = the market price, Q = total output from
Firm 1 (Q1) and Firm 2 (Q2). The cost functions are g
Econ 203 Quiz 1
Submit them in groups.
1. David is considering his purchase of good X and good Y with P x = $10 and Py =
1/2
1/2
$20. His utility function is U(X,Y) = X
+ Y . His income is I = $120. Find
Davids optimal basket. Graphically explain your ans