Question: answer this please 1. Consider two bonds. Bond A has a face value of $1,000 and a coupon rate of 10%. Bond B has a

answer this please
answer this please 1. Consider two bonds. Bond A has a face

1. Consider two bonds. Bond A has a face value of $1,000 and a coupon rate of 10%. Bond B has a face value of $1,000 and a coupon rate of 5%. Both bonds have the same maturity. Which bond has the greater interest rate risk? a. Bond A b. Bond B c. Bond A or B d. None of the above 2. A rising trend in the prices of most goods and services. This is called a. Real rate b. Nominal rate c. Inflation rate d. Interest rate 3. The risk to the bondholders may increase, because larger offerings result in-1os a. greater risk of default b. greater interest rate risk c. greater maturity risk d. greater business risk 4. Bond buyers rely on ............... to determine the issuer's overall risk. a. Public information b. Bond rating c. Private information d. Current information 5. Consider two bonds. Bond C has a face value of S1,000 and five years remaining to maturity. Bond D has a face value of $1,000 and ten years remaining to maturity. Both bonds have the same coupon rate of 10%. Which bond has the greater interest rate risk? a. C. b. D c. C and D d. None of the above 6. If two series tend to vary in the same direction, they are- a. negatively correlated b. Correlation c. positively correlated d. all of the above

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