Quiz Ch 11 – Yield Curve Opportunities for Bond Managers
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
How could a bond manager exploit a hump in the yield curve at the 5-year point?
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?
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)?
How does the discount rate affect the duration of a zero-coupon bond based on its time to maturity?