Long period of bond maturity leads to

Related MCQs

• Lara wants to buy a bond and hold it until it matures. Which of the following must occur if Lara is to realize a holding period return equal to the bond’s yield to maturity?
• The price of a T-bill today is $97 and its maturity value is $100. The maturity is 6 months from now.
• If the coupon rate is constant, the value of bond when close to maturity will be
• An investor who expects increasing interest rates should purchase a bond that has a _____ coupon and a _____term to maturity.
• The Yield to Maturity of a bond is the same as_____________?
• A bond that makes no coupon payments (and thus is initially priced at a deep discount to par value) is called a_______ bond.
• The annual coupon of a bond divided by its face value is called the bond:
• These are instruments, which give a fixed rate of interest for a fixed period of maturity.
• These are instruments, which give a fixed rate of interest for a fixed period of maturity.
• __________ instruments are those instruments, which have a maturity period of less than one year