A. the higher its duration
B. the lower its duration
C. zero duration
D. One year duration
Related Mcqs:
- The type of bonds that pay coupon interest are classified as ____________?
A. forward bond
B. payment bonds
C. coupon bond
D. interest bonds - 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 - 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 change in interest rate measured in percentage for given interest rate change is classified as __________?
A. premium yield
B. elasticity
C. duration
D. maturity yield - 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 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 direct relationship between price change and interest rate change is represented by __________?
A. positive duration
B. positive discount
C. negative discount
D. negative duration - The inverse relationship between price change and interest rate change is represented by ___________?
A. negative discount
B. negative duration
C. positive duration
D. positive discount
