Question 1

Holding other factors constant, the interest-rate risk of a coupon bond is higher when the bond's

Accepted Answer

A) term to maturity is lower. 
B) coupon rate is higher. 
C) yield to maturity is lower. 
D) current yield is higher. 
E) None of the options 
A) term to maturity is lower. 
B) coupon rate is higher. 
C) yield to maturity is lower. 
D) current yield is higher. 
E) None of the options

Question 2

Holding other factors constant, the interest-rate risk of a coupon bond is lower when the bond's

Accepted Answer

A) term to maturity is lower. 
B) coupon rate is higher. 
C) yield to maturity is lower. 
D) term to maturity is lower and coupon rate is higher. 
E) All of the options 
A) term to maturity is lower. 
B) coupon rate is higher. 
C) yield to maturity is lower. 
D) term to maturity is lower and coupon rate is higher. 
E) All of the options

Question 3

An 8%, 30-year corporate bond was recently being priced to yield 10%.The Macaulay duration for the bond is 10.20 years.Given this information, the bond's modified duration would be

Accepted Answer

A) 8.05. 
B) 9.44. 
C) 9.27. 
D) 11.22. 
E) None of the options 
A) 8.05. 
B) 9.44. 
C) 9.27. 
D) 11.22. 
E) None of the options

Question 4

The duration of a par value bond with a coupon rate of 6.5% and a remaining time to maturity of 4 years is

Accepted Answer

A) 3.65 years. 
B) 3.45 years. 
C) 3.85 years. 
D) 4.00 years. 
A) 3.65 years. 
B) 3.45 years. 
C) 3.85 years. 
D) 4.00 years.

Holding other factors constant, the interest-rate risk of a coupon bond is higher when the bond's

Holding other factors constant, the interest-rate risk of a coupon bond is lower when the bond's

An 8%, 30-year corporate bond was recently being priced to yield 10%.The Macaulay duration for the bond is 10.20 years.Given this information, the bond's modified duration would be

The duration of a par value bond with a coupon rate of 6.5% and a remaining time to maturity of 4 years is

The Investment Environment

Asset Classes and Financial Instruments

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters

Exam 16: Managing Bond Portfolios

Holding other factors constant, the interest-rate risk of a coupon bond is higher when the bond's

Holding other factors constant, the interest-rate risk of a coupon bond is lower when the bond's

An 8%, 30-year corporate bond was recently being priced to yield 10%.The Macaulay duration for the bond is 10.20 years.Given this information, the bond's modified duration would be

The duration of a par value bond with a coupon rate of 6.5% and a remaining time to maturity of 4 years is

The Investment Environment

Asset Classes and Financial Instruments

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Optimal Risky Portfolios

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters