Ünite Sınavı Soruları

1. Long-term bond investors face higher interest rate risk.
2. Long-term bond investors will have a disadvantage when market interest rates increase
3. Short-term bond investor faces higher reinvestment rate risk.
4. Short-term bond investors will have a disadvantage when market interest rates decline.

Which of the statements above about bond investors is/are correct?

The yield curve plots the relationship between bond yields and which of the followings?

How much should you pay for a $50 bond with 12% coupon, annual payments, and 5 years to maturity if the interest rate is 14%?

Suppose that you are planning to invest in a stock that will pay $8 as dividend and its price will be $250 next year. Assume that this stock is correctly priced in the market and its market price is $245. What is the expected rate of return?

The difference between the promised yield on the corporate bond and the yield on government bond with the same coupon rate and maturity is called __________________.