Mytutionguru 8052 9728 CH 13 QUIZ 12 CH 13 QUIZ 12 Terminal wealth analysis is the process of measuring the effects of shifting market rates on bond prices. 0 sold Other / Other University of Phoenix / Other 02 Sep 2015
Mytutionguru 8052 9728 CH 13 QUIZ 13 CH 13 QUIZ 13 A zero-coupon bond has a duration equal to its maturity. 0 sold Other / Other University of Phoenix / Other 02 Sep 2015
Mytutionguru 8052 9728 CH 13 QUIZ 14 CH 13 QUIZ 14 Duration times the reinvestment rate will give the approximate change in bond price for a 1 percent change in interest rates. 0 sold Other / Other University of Phoenix / Other 02 Sep 2015
Mytutionguru 8052 9728 CH 13 QUIZ 15 CH 13 QUIZ 15 Duration is a useful number because it combines the effects of maturity, coupon and market rates to indicate how the price of the bond will change with a change in interest rates. 0 sold Other / Other University of Phoenix / Other 02 Sep 2015
Mytutionguru 8052 9728 CH 13 QUIZ 16 CH 13 QUIZ 16 Terminal wealth analysis is one way of analyzing the effect of the reinvestment rate risk. 0 sold Other / Other University of Phoenix / Other 02 Sep 2015
Mytutionguru 8052 9728 CH 13 QUIZ 17 CH 13 QUIZ 17 High coupon bonds will usually have higher durations than low coupon bonds of the same maturity. 0 sold Other / Other University of Phoenix / Other 02 Sep 2015
Mytutionguru 8052 9728 CH 13 QUIZ 18 CH 13 QUIZ 18 For two bonds with equal coupons, duration would be higher for the bond with the shortest maturity. 0 sold Other / Other Kaplan University / Other 02 Sep 2015
Mytutionguru 8052 9728 CH 13 QUIZ 19 CH 13 QUIZ 19 Terminal wealth analysis for a zero coupon bond is irrelevant. 0 sold Other / Other allied-american-university / Other 02 Sep 2015
Mytutionguru 8052 9728 CH 13 QUIZ 20 CH 13 QUIZ 20 The actual yield to maturity an investor receives becomes more of a function of the reinvestment rate the shorter the maturity of the bond. 0 sold Other / Other allied-american-university / Other 02 Sep 2015
Mytutionguru 8052 9728 CH 13 QUIZ 21 CH 13 QUIZ 21 For a bond selling at par of $1000, when the coupon equals the yield to maturity in the current market, duration then is equal to the bond maturity in years. 0 sold Other / Other strayer university / Other 02 Sep 2015