A. maturity is lower
B. maturity is higher
C. interest payment is higher
D. interest payment is lower
Related Mcqs:
- The interest rate that investors receive on financial security to calculate fair value of security is classified as ___________?
A. forward rate of return
B. unturned rate of return
C. required rate of return
D. termed rate of return - 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 type of bonds that pay coupon interest are classified as ____________?
A. forward bond
B. payment bonds
C. coupon bond
D. interest bonds - In zero coupon bonds, the impact of lower duration on maturity is that __________?
A. maturity will be higher
B. maturity will be lower
C. maturity will be zero
D. maturity will be elastic - 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 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 type of bond whose present value is lesser than that of its face value is classified as ___________?
A. discount bond
B. premium bond
C. coupon bond
D. interest bonds - For given change in interest rates, the percentage change in the present value of bond is classified as __________?
A. price sensitivity
B. yield sensitivity
C. maturity sensitivity
D. premium sensitivity - 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
