Question: Question 3 Today, the Dow rose 47 points. Declining issues were 1822, while increasing issues were 1427. Why might a technical analyst be concerned? Chapter

Question 3

Today, the Dow rose 47 points. Declining issues were 1822, while increasing issues were 1427. Why might a technical analyst be concerned?

Chapter 14 Questions

Question 1

Which of these would have a higher effective annual interest rate (EAR)?

A 3 month T-bill selling at $97,645 with a $100,000 par value; or a coupon bond selling at par and paying a 10% coupon semi-annually?

Question 2

A bond has a 10% coupon and a yield to maturity (YTM) of 8%. If the YTM remains constant, in one year will be the bonds price be higher, lower, or unchanged? Why?

Question 3

A 20 year maturity coupon bond, with a par value of $1000, has an 8% coupon, paying semi-annually. What is the bond equivalent yield and effective annual yield if the bond price is:

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