6.A yield curve is flat, and then it undergoes a non-parallel shift. After the shift, which of the following must be FALSE? The new yield curve is: A) curvilinear. B) a straight line. C) negatively sloped. D) flat. The correct answer was D) If a yield curve begins flat and then experiences a non-parallel shift, this means that some rates changed more than others. After the non-parallel shift the formerly flat yield curve can no longer be flat. 7.Suppose that there is a nonparallel downward shift in the yield curve. Which of the following best explains this phenomenon? A) The yield decrease is the same for all maturities. B) The yield increase is the same for all maturities. C) The absolute yield decrease is different for some maturities. D) The absolute yield increase is different for some maturities. The correct answer was C) A nonparallel downward yield curve shift indicates an unequal yield decrease across all maturities, i.e., some maturity yields declined more than others. 8.Suppose that there is a parallel upward shift in the yield curve. Which of the following best explains this phenomenon? The yield: A) increase is the same for all maturities. B) decrease is the same for all maturities. C) increase is proportional to the original level for all maturities. D) decrease is proportional to the original level for all maturities. The correct answer was A) A parallel upward shift indicates an equal yield increase across all maturities. | 
发表于 2008-4-18 11:20
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