1. The total return on a “plain vanilla” (no-frills) bond, if sold prior to maturity, depends on three factors. Which of

[answerhappygod]

1. The total return on a “plain vanilla” (no-frills)bond, if sold prior to maturity, depends on three factors. Which ofthe following does not belong? Indicate by letter. a. Price changeb. Coupon change c. Interest earned d. Interest-on-the-interestearned
2. True or False: “Duration Drift” has to do with thenatural tendency for Duration to increase overtime.
3. True or False: When a bond’s coupon is paid, itsDuration experiences a “hiccup.”
4. True or False: The hiccup causes duration to increasemomentarily.
5. A high- or low-coupon bond will have greaterduration. Which is it?