Oc) the flat price plus accrued interest D) the fat price plus the present value
ID: 2782549 • Letter: O
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Oc) the flat price plus accrued interest D) the fat price plus the present value of remaining coupon interest payments 10 Treasury STRIPS for inflation by resetting the coupon rate OA) pay interest that is adjusted B) pay interest that is adjusted for infation by resetting th C) are zero coupon Treasury securities OD) are Treasury bill sued in large denominations A bond that gives the bandholder the option to exchange it for common OA) callable bond OB) floating-rate bond Oc) puttable bond OD) canvertibie bond 12 which of the following statement is incorrect regerding credit default swaps? OA) A CDs is in effect an insurance policy on the default risk of a corporate bond. CDSs were designed to allo w lenders to buy protection against losses on sizable loans. the credit exposure of variable income products between parties Oc) cDss are designed to transfer t OD) The swap buyer pays an annual premium to the swap seller in exchange, receives a payoff if a credit instrument g 13 Issuers of bonds may choose to pay interest either in cash or in additional bonds. OA) catastrophe OB) asset-backed Oc) pay-in-kind OD) inverse floaters 14 The yield to maturity is equal to the realized compound return t all coupon interest payments OA) are not reinvested OB) are reinvested at the market rate Oc) are reinvested at the bond's coupon rate O D) are reinvested at the bond's yield to maturity the yield curve dicates that one, two and three-year maturit respectively. what are the implied one-year 15 ult free. zero-coupon bonds have yields to matunty of 5% 6% and 8%, de forward rates? A) 2.0%, 6.0% OB) 60%, 20% OC) 7.0%, 12.11% OD) 12.1%, 6,0% Submit Answer To learn mer·about the took ths website supports, please visit ts lofeoszatsn Ce Copyright 2017 A ights aerved Any use is sahjereExplanation / Answer
10.Treasury strips are Zero coupan Bonds having Face value of Coupan amount of Bond ( C strips).
hence the correct answer is(c) Zero coupan treasury securities.
11.The Convertible Bond has the option foe the shareholder to convert it into Equity Shares . Hence the correct answer is (d) Convertible bond
13.Pay in kind Bond is the bond which pay interest in the form of additional Bond rather in cash.
Hence the correct answer is (c). Pay in kind Bond
14.If all the coupan amounts are reinvested at Bonds YTM then bonds YTM is equal to the realised compounded return. Hence the correct answer is (d).
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