Quiz Ch 11 – Bond Duration Relationship
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
How does a bond’s duration change with variations in yield to maturity, assuming all other factors remain constant?
How does a bond’s duration change with variations in yield to maturity, assuming all other factors remain constant?
What strategy involves swapping a bond for another with similar attributes but at a better price?
How is the realized rate of return affected by changes in interest rates when holding a bond with a 10-year duration for an investment horizon of 6 years?
What swap type occurs when a portfolio manager sells short-duration bonds to buy long-duration bonds based on rate expectations?
What type of decision is it when a portfolio manager switches between Treasury and corporate bonds due to an increased yield spread?
What is the term used to describe the action of transitioning to higher-yield bonds often with longer maturities?
What types of risks do bond portfolio immunization techniques seek to balance?
Which statement is incorrect regarding bond prices and yields?
How does bond convexity impact the price change difference between yield decreases and yield increases of equal magnitude?
How does bond price responsiveness to yield shifts differ based on the initial yield to maturity?