IncorrectQuestion 1
0 / 1 pts
A 3% Australian government bond maturing on the 18th June 2022
has coupons payable semi-annually. What is the value of the bond
today given a yield of 4%? It is currently 26th February 2020.
98.4
99.4
101.4
100.4
Question 2
0 / 1 pts
Which of the following statements in relation to price
volatility and coupon rate is correct?
The lower the coupon rate, the greater the price volatility
This relationship is determined by the type of issuer
The lower the coupon rate, the lower the price volatility
There is no relationship between coupon rate and price
volatility
Calculate the modified convexity p.a. for a 4.5% 2.5 years bond
with a yield of 2% (semi-annual payments).
6.94
5.29
6.29
6.79
Question 19
0 / 1 pts
A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3
years from today. The nominal interest rate is 6%, semi-annual
compounding. Which of the following statements is correct?
The PV of the $1,000 lump sum has a smaller present value than
the PV of a 3-year, $333.33 ordinary annuity.
The periodic interest rate is greater than 3%.
The present value of the $1,000 would be larger if interest were
compounded monthly rather than semi-annually.
The present value would be greater if the lump sum were
discounted back for more periods.
Calculate the modified convexity p.a. for a 4.5% 2.5 years bond
with a yield of 2% (semi-annual payments).
6.94
5.29
6.29
6.79
IncorrectQuestion 1 0 / 1 pts A 3% Australian government bond maturing on the 18th June 2022 has coupons payable semi-an
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