Quiz Ch 11 – Yield Impact on Bond Prices
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
How does a change in a bond’s yield to maturity affect its price compared to an equal-magnitude yield decrease?
How does a change in a bond’s yield to maturity affect its price compared to an equal-magnitude yield decrease?
What action should you take if you expect the yield spread between AA and AAA bonds to revert to its historical level (25 basis points from the current 9 basis points)?
At which break-even point does a project operate when its operating cash flow is zero?
Which value must be zero at the accounting break-even point?
How does the discount rate affect the duration of a zero-coupon bond based on its time to maturity?
What is the term for risks that are specific to a single firm?
Compute the implied return on a common stock issue given a dividend, the issue price of each share, and an annual dividend growth rate.
Your numbers will vary.