Reading 65:Yield Measures, Spot Rates, and Forward Rates- higher, affect, factors, following, levels

yangh

 

LOS c, (Part 2): Discuss the factors that affect reinvestment risk.

Q1. All else being equal, which of the following bond characteristics will lead to lower levels of coupon reinvestment risk?

A)   Longer maturities and higher coupon levels.

B)   Shorter maturities and higher coupon levels.

C)   Shorter maturities and lower coupon levels.

 

Q2. All else being equal, which of the following bond characteristics will lead to higher levels of coupon reinvestment risk?

A)   Longer maturities and lower coupon levels.

B)   Longer maturities and higher coupon levels.

C)   Shorter maturities and higher coupon levels.

 

Q3. If the coupon payments are reinvested at the coupon rate during the life of the issue, then the:

A)   yield to maturity is less than the realized yield.

B)   yield to maturity is greater than the realized yield.

C)   yield to maturity cannot be determined from the information given.

 

khaipinglai

 thanks

danforth

d

seraphiris0116

thanks

echopapa

thx

scofield1985

d

dreamcici

thanks for sharing

zsd425

 谢谢了

heartfc

谢谢楼主的分享

yoyome

t