1. If the reinvestment rate exceeds the yield-to-maturity, the Realized Compound Yield will be greater or less than the

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

1. If the reinvestment rate exceeds the yield-to-maturity, the Realized Compound Yield will be greater or less than the

Post by answerhappygod »

1. If the reinvestment rate exceeds theyield-to-maturity, the Realized Compound Yield will be greater orless than the yield-to-maturity. Which is it?
2. True or False: If there is a perfect offset of thePrice- and Reinvestment-risks, the RCY will NOT be equal tothe YTM.
3. If the YTM is negative, the nominal value of thebond’s cash flows will be greater than or less than thedollar price. Which is it?
4. True or False : The Price -Yield Curve isasymptotic to the vertical axis.
5. True or False: As Yields decrease down, pricesincrease decreasingly.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”