Quiz Ch 11 – Bond Investment Strategy
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What type of decision is it when a portfolio manager switches between Treasury and corporate bonds due to an increased yield spread?
What type of decision is it when a portfolio manager switches between Treasury and corporate bonds due to an increased yield spread?
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 convexity impact the price change difference between yield decreases and yield increases of equal magnitude?
How does bond price responsiveness to yield shifts differ based on the initial yield to maturity?
How does price sensitivity respond to rising interest rates with bonds above par?
How does a bond’s price volatility change with maturity?
Which factor results in higher bond price volatility under equal conditions?
Which bond swap is typically NOT utilized in active portfolio management?