Quiz Ch 10 – Bond Return Analysis
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What term describes forecasting bond returns over time using predicted yield to maturity and coupon reinvestment rate?
What term describes forecasting bond returns over time using predicted yield to maturity and coupon reinvestment rate?
What is the name for bonds backed by assets held by the issuing company?
Given an anticipated increase in interest rates, which bond would be the preferable choice for Joe Hill?
Which bond should Joe Hill favor amid rising interest rate volatility?
Which bond characteristic combination results in a stronger response of the bond’s price to interest rate changes under constant conditions?
What happens to their values if the yields to maturity on bonds A and B change from 12% to 14%?
What is the metric representing the ratio of a bond’s annual coupon payment to its market price?
What term describes bonds issued in the home currency but marketed internationally?
What term describes bonds coupon rates decreasing as overall interest rates increase?
How do break-even sales calculated based on NPV generally compare to break-even sales calculated using accounting profit?