Quiz Ch 11 – Understanding Bond Convexity
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What is the definition of convexity for a bond?
What is the definition of convexity for a bond?
What concept does bond duration quantify?
What do financing activities on a statement of cash flows relate to?
What is the equation for free cash flow?
What is the treatment of a decrease in prepaid expenses when using the indirect method to calculate net cash provided by operating activities?
How is an increase in accounts payable treated on a statement of cash flows prepared using the indirect method?
Which of the following is NOT reported on the statement of cash flows?
What action should you take regarding the Xerox and Canon bonds with an expectation of rising interest rates?
How could a bond manager exploit a hump in the yield curve at the 5-year point?
How does a change in a bond’s yield to maturity affect its price compared to an equal-magnitude yield decrease?