Question 6 Which of the following statement is TRUE? 1. Two different bonds never have the same price value of a basis point II. Bond price volatility usually increases with the term to maturity III. Bond price volatility usually decreases with the yield to maturity IV. Bond price volatility usually increases with the coupon rate II only II and III II, III, and IV I and II 15 pts
Question 12 Macaulay duration is a measure of 1. bond price volatility II. effective maturity O I only O II only I and II O Neither I nor II 10 pts
Question 4 15 pts Which of the following statement is TRUE? 1. For callable bonds, the call feature provides protection to the borrower (i.e., issuer of the bond) II. For callable bonds, the call feature provides protection to the lender (i.e., the investor) III. For puttable bonds, the put feature provides protection to the borrower (i.e., the issuer of the bond) O I only O I or II can be true, it depends on the level of interest rates O II only O II and III
Question 6 Which of the following statement is TRUE? 1. Two different bonds never have the same price value of a basis p
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