Quiz Ch 11 – Bond Assessment with Duration
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What specific aspect of a bond does duration analysis primarily focus on?
What specific aspect of a bond does duration analysis primarily focus on?
How does a bond’s duration change with variations in coupon rates, assuming all other factors remain constant?
What strategy involves swapping a bond for another with similar attributes but at a better price?
What type of decision is it when a portfolio manager switches between Treasury and corporate bonds due to an increased yield spread?
What swap type occurs when a portfolio manager sells short-duration bonds to buy long-duration bonds based on rate expectations?
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 price responsiveness to yield shifts differ based on the initial yield to maturity?
How does a bond’s price volatility change with maturity?