The 3 most important features to consider when selecting an
investment-grade bond for purchase are coupon rate, maturity, and
credit rating.
[ Choose
] Neither
True or False
False
True
To minimize price volatility in an uncertain interest rate
environment, an investor should emphasize floating-rate bonds.
[ Choose
] Neither
True or False
False
True
In regard to bond portfolios, the ‘duration’ measure refers to
the expected holding period of an investment.
[ Choose
] Neither
True or False
False
True
Yield ratio and tax-equivalent yield are commonly used to
determine the relative value of Municipal bonds versus
Treasuries.
[ Choose
] Neither
True or False
False
True
Most investors should consider an allocation to hedged
international securities, incl. emerging markets, in their
portfolio.
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] Neither
True or False
False
True
An active investment style is implemented by frequently
adjusting the portfolio characteristics to closely match the risk
and return of the designated benchmark.
[ Choose
] Neither
True or False
False
True
‘Top Down’ analysis is best described as using a company’s
financial information and competitive position to determine if a
bond issued by the company is a good value for the risk.
[ Choose
] Neither
True or False
False
True
Changes in the credit risk of an issuer or bond are more quickly
reflected in the credit spread rather than the credit rating.
[ Choose
] Neither
True or False
False
True
When evaluating a security with a significant chance of default,
yield-to-maturity is the best estimate of expected return.
The 3 most important features to consider when selecting an investment-grade bond for purchase are coupon rate, maturity
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