Quiz Ch 11 – Bond Swap Types
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What is the term for a bond swap conducted based on predictions of interest rate shifts?
What is the term for a bond swap conducted based on predictions of interest rate shifts?
How do deep discount bonds compare to equivalent maturity bonds selling at par in terms of which characteristic?
Which statements are true when selecting a zero-coupon bond matching your investment horizon?
How does convexity affect duration predictions regarding bond price changes?
How does convexity influence actual bond prices compared to duration predictions when interest rates change?
Which bond type experiences no influence on its duration due to changes in the coupon rate?
Which bond exhibits the longest duration with YTM fixed at 10%?
Which bond exhibits the shortest duration keeping YTM constant at 10%?
What is the duration period for a 5-year zero-coupon bond?
Which bond has the longest duration with everything else unchanged?