The 4.5 per cent 15 April 2020 bond will:
A) be a premium bond if bond yields are 5 per cent
B) be a par bond if bond yields are 4 per cent
C) earn a capital gain, if yields decrease from when it is purchased to when it is sold
D) have more price risk than a longer term bond
E) More than one of these answers is correct.
Correct Answer:
Verified
Q84: Treasury bonds trade cum-interest for how many
Q85: The real rate component of bond market
Q86: Describe the issuing processes for semi-government bonds.
Q87: What was the price, per $100 of
Q88: Describe the issuers of non-government bonds.
Q90: Of the following, which is NOT relevant
Q91: Explain the impact of the GFC on
Q92: Say you purchased a 5% Treasury bond
Q93: Assuming constant yields, bond prices will:
A)trend upwards
Q94: A Treasury bond was bought and sold
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