Quiz Ch 11 – Investment Return and Characteristics
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
How does an accelerated return of a higher investment percentage affect the following?
How does an accelerated return of a higher investment percentage affect the following?
Which investment strategy operates under the assumption that market prices of securities are justly determined?
To maximize capital gain when anticipating falling interest rates, an investor should buy a bond with a __________ coupon and a __________ term to maturity.
Who is credited as the originator of the duration concept?
What time frame achieves a balance between price risk and reinvestment rate risk in a bond portfolio?
Which bonds swap in yield pickup swaps?
What would happen to the modified duration compared to its original value if the bond’s maturity were below 10 years?
What change would occur in the modified duration compared to its original value with Steel Pier Company bonds, if the bond’s coupon were below 10%?
Who would find the target date of immunization most relevant?
What concept does bond duration quantify?