1. A bond is priced at a premium. In the first year, will the coupon interest be greater or less than the interest expe
Posted: Wed Jul 06, 2022 6:44 pm
1. A bond is priced at a premium. In the first year,will the coupon interest be greater or less than the interestexpense? Which is it?
2. For a discount bond, Maturity Pull will be offset, ifmarket yields increase or decrease. Which is it?
3. If the reinvestment rate exceeds theyield-to-maturity, the Realized Compound Yield will begreater or less than the yield-to-maturity. Which isit?
4. Which bond has greater price volatility – a long- orshort-term bond?
2. For a discount bond, Maturity Pull will be offset, ifmarket yields increase or decrease. Which is it?
3. If the reinvestment rate exceeds theyield-to-maturity, the Realized Compound Yield will begreater or less than the yield-to-maturity. Which isit?
4. Which bond has greater price volatility – a long- orshort-term bond?