A. maturity will be higher
B. maturity will be lower
C. maturity will be zero
D. maturity will be elastic
Related Mcqs:
- In zero coupon bonds, the impact of higher duration on maturity is that _____________?
A. maturity will be zero
B. maturity will be elastic
C. maturity will be higher
D. maturity will be lower - In zero coupon bonds, the increase in duration with respect to maturity must be at ___________?
A. decreasing rate
B. increasing rate
C. alarming rate
D. inelastic rate - The type of bonds that pay coupon interest are classified as ____________?
A. forward bond
B. payment bonds
C. coupon bond
D. interest bonds - The type of bond for which the bonds present value is greater than bonds face value is classified as ____________?
A. coupon bond
B. interest bonds
C. discount bond
D. premium bond - The more the coupon payment or promised interest payment ____________?
A. the higher its duration
B. the lower its duration
C. zero duration
D. One year duration - The investors of the coupon bond will receive cash flow very soon if the ____________?
A. maturity is lower
B. maturity is higher
C. interest payment is higher
D. interest payment is lower - The duration which is divided by the interest rate plus one is classified as ____________?
A. decreased duration
B. increase duration
C. modified duration
D. at par duration - For an investment, the weighted average time to maturity is considered as ___________?
A. premium time
B. standard time
C. mean time
D. duration - The bonds that does not pay any interest rate are considered as ___________?
A. interest free bond
B. zero coupon bond
C. price less coupon bond
D. useless price bonds - The direct relationship between price change and interest rate change is represented by __________?
A. positive duration
B. positive discount
C. negative discount
D. negative duration
