Multiple choice
Thehonest1. At any given time, the yield curve is affected by all of the following EXCEPT
A. inflationary expectations.;
B. the approximate yield formula.;
C. short- and long-term supply and demand conditions.
D. liquidity preferences.;
2. Using the present-value method, all of the following are needed to value a bond EXCEPT
A. the issue's bond rating.
B. the par value.;
C. the number of years until maturity.;
D. the annual coupon payment.;
3. What is the current yield of a $10,000 bond bearing a 14% coupon rate and having a current market price of 95?
A. 14.74%;
B. 15.36%;
C. 14.00%;
D. insufficient information is provided.
4. The rate of return which indicates the return an investor can expect to earn by holding a bond over a period of time that is less than the life of the issue is known as
A. bond equivalent yield (BEY)
B. expected return;
C. yield-to-maturity;
D. promised yield;
- 10 years ago
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