Quiz Ch 10 – Factors Influencing Municipal Bond Yields
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What specific factors primarily cause lower yields on municipal bonds compared to equivalent corporate bonds?
What specific factors primarily cause lower yields on municipal bonds compared to equivalent corporate bonds?
Given constant interest rates, what will happen to the price of a 7-year bond with a 9% coupon and a yield to maturity of 12% one year from now?
What is the term for Treasury securities that are indexed to inflation?
What effect do shifting market interest rates, causing a premium bond to sell at a discount, likely have on the holding-period return upon sale?
Which bond scenario will experience the smallest price change with a 1% decline in yield?
How do TIPS annually safeguard investors against inflation?
Which type of bond allows the issuer to decide between paying interest in cash or with additional bonds?
In 2012, which country experienced the most substantial sovereign default on record?
What yield expectations do investors generally have for short-term and long-term bonds according to the liquidity preference theory?
Which bond type is anticipated to have the least yield?