Valuation Of Securities
In zero coupon bonds, the impact of higher duration on maturity is that
maturity will be zero
maturity will be elastic
maturity will be higher
maturity will be lower
maturity will be lower
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In zero coupon bonds, the impact of lower duration on maturity is thatA. maturity will be higher
B. maturity will be lower
C. maturity will be zero
D. maturity will be elastic
The more the coupon payment or promised interest payment
A. the higher its duration
B. the lower its duration
C. zero duration
D. One year duration
The type of bonds that pay coupon interest are classified as
A. forward bond
B. payment bonds
C. coupon bond
D. interest bonds
The direct relationship between price change and interest rate change is represented by
A. positive duration
B. positive discount
C. negative discount
D. negative duration
For given change in interest rates, the percentage change in the present value of bond is classified as
A. price sensitivity
B. yield sensitivity
C. maturity sensitivity
D. premium sensitivity
The interest rate that investors receive on financial security to calculate fair value of security is classified as
A. forward rate of return
B. unturned rate of return
C. required rate of return
D. termed rate of return
The inverse relationship between price change and interest rate change is represented by
A. negative discount
B. negative duration
C. positive duration
D. positive discount
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