Bootstrapping
involves( )
A: Calculating the
yield on a bond
B: Working from
short maturity instruments to longer maturity instruments determining
zero rates at each step
C: Working from long
maturity instruments to shorter maturity instruments determining zero
rates at each step
D: The calculation
of par yields
involves( )
A: Calculating the
yield on a bond
B: Working from
short maturity instruments to longer maturity instruments determining
zero rates at each step
C: Working from long
maturity instruments to shorter maturity instruments determining zero
rates at each step
D: The calculation
of par yields
举一反三
- A<br/>coupon bond that pays interest annually is selling at a par value of<br/>$1,000, matures in five years, and has a coupon rate of 9%. The yield<br/>to maturity on this bond is ________ A: 8.0%. B: 8.3%. C: 9.0%. D: 10.0%. E: None<br/>of the options are correct.
- A<br/>coupon bond that pays interest annually has a par value of $1,000,<br/>matures in seven years, and has a yield to maturity of 9.3%. The<br/>intrinsic value of the bond today will be ________ if the coupon rate<br/>is 8.5%. A: $712.99 B: $960.14 C: $1,123.01 D: $886.28 E: $1,000.00
- A<br/>coupon bond that pays interest semi-annually has a par value of<br/>$1,000, matures in seven years, and has a yield to maturity of 11%.<br/>The intrinsic value of the bond today will be ________ if the<br/>coupon rate is 8.8%. A: $922.78 B: $894.51 C: $1,075.80 D: $1,077.20 E: None<br/>of the options are correct.
- A<br/>bond that can be retired prior to maturity by the issuer is a convertible bond. ( )
- A<br/>financial market in which only short-term debt instruments are traded<br/>is called the ________market. A: bond B: money C: capital D: stock