Question: Explain the differences among various concepts of yield such as yield to maturity, yield to call, and anticipated realized yield. ( 2 Marks) Q.2. Explain

Explain the differences among various concepts of yield such as yield to maturity, yield to call, and anticipated realized yield. ( 2 Marks)

Q.2. Explain the effect that duration has on bond price sensitivity to interest rate changes and relate zero-coupon bonds to the concept of duration.

( 2 Marks )

Q.3. Discuss the basic concept of an option and define strike price, intrinsic value, and speculative premium.

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