For an absolute change in interest rates, the price gain on a bond caused by a decrease in yield is ________ the price loss caused by an increase in yield.
A) greater than
B) the same as
C) less than
D) Greater than if the bond is selling at a premium, less than if the bond is selling at a discount.
E) Greater than if the bond is selling at a discount, less than if the bond is selling at a premium.
Correct Answer:
Verified
Q48: As a bond's yield increases, its price
Q49: All else the same, a bond's interest
Q50: A bond has a yield-to-maturity that is
Q51: All else the same, as a premium
Q52: For a premium bond, the
A) Current yield
Q54: Modified duration is calculated as:
A) Macaulay
Q55: You had created a bond portfolio last
Q56: To immunize your portfolio, you should
A) Avoid
Q57: For a given change in interest rates,
Q58: All else the same, for a callable
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