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CH 13 QUIZ 36 The duration of a 20-year, $1,000 bond at a COUPON rate of 8 percent is _________ the duration of an identical bond at a coupon rate of 6 percent. A. Greater than B. Less than C. Equal to D. There is not enough information to tell

Other / Other strayer university / Other 02 Sep 2015

CH 13 QUIZ 37 The highest duration and maximum price sensitivity relative to years to maturity are produced by A. A coupon rate equal to the market rate B. A low coupon rate C. A zero coupon D. None of the above

Other / Other strayer university / Other 02 Sep 2015

CH 13 QUIZ 38 The duration on an 8 percent, 25-year bond is ______ the duration on a 9 percent, 30-year bond. A. Greater than B. Less than C. Equal to D. There is not enough information to tell

Other / Other allied-american-university / Other 02 Sep 2015

CH 13 QUIZ 39 Duration is used primarily as a measure of A. The relationship between coupon rate and bond rating B. Bond price sensitivity to interest rate changes C. The present value of investment inflows D. None of the above

Other / Other allied-american-university / Other 02 Sep 2015

CH 13 QUIZ 40 Immunization is the process of ________ to ensure an outcome. A. Measuring bond price sensitivity to interest rates B. Trying all investment decisions to a particular market interest rate C. Tying all investment decisions to a duration period D. None of the above

Other / Other allied-american-university / Other 02 Sep 2015

AC 302 Week 6 EXAM Quiz 100% Correct Question 1. Question : The following information relates to Jackson, Inc.: For the Year Ended December 31, 2014 2015 Plan assets (at fair value) $1,360,000 $1,8

Other / Other strayer university / AC 302 02 Sep 2015

AC 302 Week 5 Quiz 1 Question In accounting for a pension plan any difference between the pension cost charged to expense and the payments into the fund should be reported as

Other / Other allied-american-university / AC 302 02 Sep 2015

AC 302 Week 5 Quiz 2 Question The following information for Cooper Enterprises is given below: December 31, 2015 Assets and obligations Plan assets (at fair value) $400,000 Accumulated benefit obligation 740,0

Other / Other allied-american-university / AC 302 02 Sep 2015

CH 13 QUIZ 25 One of the benefits of zero-coupon bonds is that they lock in a compound rate of return (or reinvestment rate) for the life of the bond if held to maturity.

Other / Other allied-american-university / Other 02 Sep 2015

CH 13 QUIZ 26 In general, duration is the number of years, on a future-value basis, that it takes to recover an initial investment in a bond.

Other / Other allied-american-university / Other 02 Sep 2015