1、Is an option-free bond's price sensitivity positively correlated with the:

      bond's coupon rate?       level of market interest rates?

A.    No   No

B.    No   Yes

C.    Yes  No

D.    Yes  Yes

A. Answer A

B. Answer B

C. Answer C

D. Answer D

答案如下：

[此贴子已经被作者于2008-11-25 11:14:26编辑过]

答案和详解如下：

1、Correct answer is A

"Risks Associated with Investing in Bonds," Frank J. Fabozzi

2008 Modular Level I, Vol. 5, pp. 266-268

Study Session 15-63-c

explain how features of a bond (e.g., maturity, coupon, and embedded options) and the level of a bond's yield affect the bond's interest rate risk

An option-free bond's price sensitivity (interest rate risk) is greater when both the coupon rate and level of market interest rates are low; price sensitivity is negatively correlated with both factors.