|
Q6. Brown is now considering the effects of convexity in isolation. Of all the bonds in Tables 1 and 2, Brown wonders which would be the most likely to have the best convexity properties with respect to investing. Which of the following bonds has the most desirable convexity properties?
A) IF.
B) FRN.
C) Fixed coupon ABC bond.
Q7. Brown now begins analyzing the FRN in Table 2. Specifically, she would like to price the FRN immediately following a coupon payment. Which of the following is the closest to Brown's answer?
A) 107.18.
B) 97.56.
C) 100.00.
Q8. Convexity is more important when rates are:
A) high.
B) unstable.
C) low.
| 
发表于 2009-3-5 11:31
| 
