5. The estimated percentage change in the value of a bond derived from the duration rule is A) less than the actual price change when the yield decreases B) less than the actual price change when the yield increases C) greater than the actual price change when the yield decreases D) always greater than the actual price change

5. The estimated percentage change in the value of a bond derived from the duration rule is A) less than the actual price change when the yield decreases B) less than the actual price change when the yield increases C) greater than the actual price change when the yield decreases D) always greater than the actual price change

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 15QTD

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Similar questions

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( ) is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates. a.Convexity b.Maturity c.Duration d.Immunization
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1. A bond call price amount is a. lower than the par value b. higher than the par value c. lower than the discount value 2. Risk of losing a market due to forex change. a. economic risk b. market risk c. transaction risk
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