A $1,000 bond has a market price of $850. During year one its discount decreased by $10. If the yield-to-maturity remains fixed, during year five its discount will likely decrease by
A) $7.
B) $2.
C) must know size of coupon rate.
D) $15.
Correct Answer:
Verified
Q14: Each Thursday the Federal Reserve BoarThe effect
Q15: A pricing theorem for the bond market
Q16: Immunization is accomplished by calculating the duration
Q17: _ is the tendency for bond prices
Q18: _ is a measure of the average
Q20: Duration is a _ of the lengths
Q21: A dedicated portfolio lacks _ risk.
A) political
B)
Q22: The graph relating bonds' yield-to-maturity to price
Q23: An immunized bond portfolio has
A) a short
Q24: A drop in a bond's yield results
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