An investor who expects declining interest rates would maximize their capital gain by purchasing a bond that has a ___ coupon and a ___ term to maturity.
A) low; long
B) high; short
C) high; long
D) zero; long
Correct Answer:
Verified
Q49: A bond has a current price of
Q50: To create a portfolio with a duration
Q51: A bond has a maturity of 12
Q52: The duration of a bond normally increases
Q53: A bond pays annual interest. Its coupon
Q56: A perpetuity pays $100 each and every
Q56: An 8%,30-year bond has a yield-to-maturity of
Q57: Which of the following set of conditions
Q58: A bond with a 9-year duration is
Q59: A bank has $50 million in assets,$47
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents