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Q13. Which of the following five year bonds has the highest interest rate sensitivity?
A) Zero-coupon bond.
B) Floating rate bond.
C) Option-free 5% coupon bond.
Q14. Which of the following fixed-coupon bonds has the least price volatility? All else equal, the bond with a maturity of:
A) 5 years.
B) 10 years.
C) 20 years.
Q15. Which of the following 10-year fixed-coupon bonds has the most price volatility? All else equal, the bond with a coupon rate of:
A) 6.00%.
B) 5.00%.
C) 8.00%.
Q16. The factors that determine how changes in interest rates affect bond values include all of the following EXCEPT:
A) term to maturity.
B) embedded options.
C) issue price.
Q17. Which of the following statements about how the features of a bond impact interest rate risk is TRUE?
A) For a given change in yield, a higher coupon bond will experience a larger change in price than a lower-coupon bond.
B) Zero-coupon bonds have the highest price volatility.
C) Market yields are the most important determinant of bond price volatility.
Q18. Which of the following statements concerning the price volatility of bonds is most accurate?
A) Bonds with higher coupons have lower interest rate risk.
B) Bonds with longer maturities have lower interest rate risk.
C) As the yield on callable bonds approaches the coupon rate, the bond's price will approach a "floor" value.
Q19. Which one of the following option-free bonds has the largest interest rate risk?
|
Bond issue |
Coupon rate |
Maturity (Years) |
Required Market Yield |
|
1 |
5.00% |
10 |
6.50% |
|
2 |
5.80% |
11 |
6.30% |
|
3 |
5.30% |
11 |
6.00% |
A) Bond issue 3.
B) Bond issue 1.
C) Bond issue 2.
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发表于 2009-3-2 15:22
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