FIN 351 CHAPTER 12 QUIZ 16 TO 20

FIN 351 CHAPTER 12 QUIZ 16 TO 20
16. An ascending term structure reflects the view that rates will increase in the future.
17. A descending term structure reflects the view that rates will increase in the future.
18. Short-term rates are more volatile than long-run rates.
19. A drop in interest rates causes proportionally greater gains than increases in rates will cause losses.
20. The price of a lower coupon rate bond is more sensitive to interest rate changes than higher coupon rate bonds.

Answer Detail

Get This Answer

Invite Tutor