A $1000 2-year 10% coupon bond is priced at $1000 in the market.The coupons are paid annually.The duration is:
A) less than two years.
B) more than two years.
C) 10%.
D) 2 years.
Correct Answer:
Verified
Q50: What is time value of money?
Q51: Duration is a measure of:
A)a bond's yield
Q52: Explain how price risk and reinvestment risk
Q53: When market interest rates increase,existing bonds:
A)are more
Q54: Which of the following statements is NOT
Q56: Which of the following statements is NOT
Q57: What is the percentage change in price
Q58: One way of eliminating both price risk
Q59: Which of the following is NOT an
Q60: Bond A has a duration of 5.6
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