An investor who expects increasing interest rates should purchase a bond that has a _____ coupon and a _____term to maturity.

Related MCQs

• “The yield curve will be downward sloping if the market believes that future short-term interest rates will be less than current short-term interest rate.” This statement about the term structure of interest rates is most consistent with the:
• If the coupon rate is constant, the value of bond when close to maturity will be
• 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:
• If coupon rate is equal to going rate of interest then bond will be sold
• 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?
• Required rate of return>Coupon rate, the bond will be valued at
• For a bond YTM is always equal to coupon rate.
• The price of a T-bill today is $97 and its maturity value is $100. The maturity is 6 months from now.
• Long period of bond maturity leads to