Business
Business, 28.06.2019 08:00, ri069027

Bond ratings can be used as a measure of the bonds risk true or false?

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Business, 23.06.2019 16:30, blessing5266
Risk is the risk of a decline in a bond's value due to an increase in interest rates. this risk is higher on bonds that have long maturities than on bonds that will mature in the near future. risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. this risk is obviously high on callable bonds. it is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues. which type of risk is more relevant to an investor depends on the investor's , which is the period of time an investor plans to hold a particular investment. longer maturity bonds have high risk but low risk, while higher coupon bonds have a higher level of risk and a lower level of risk. to account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called , which is the weighted average of the time it takes to receive each of the bond's cash flows. conceptual question: which of the following bonds would have the largest duration? a)10year-zero coupon bonds b)10year-7% annual coupon bonds c)10year-3% annual coupon bonds d)5year-3% annual coupon bonds e)3year-7% annual coupon bonds
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Mathematics, 06.09.2019 03:30, hma9153
The rule of 72 can be used to estimate when the value of your interest-bearing account will double. true - false bonds reduce risk by investing in various stocks. true - false mutual funds are a collection of financial securities. true - false if your parents want to invest in something with the lowest risk, they should probably choose bonds. true - false
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Business, 01.10.2019 19:00, ari10184
Which of the following statements is correct? a. if interest rates increase, all bond prices will increase, but the increase will be greater for bonds that have less price risk. b. long-term bonds have less price risk but more reinvestment risk than short-term bonds. c. relative to a coupon-bearing bond with the same maturity, a zero coupon bond has more price risk but less reinvestment risk. d. one advantage of a zero coupon treasury bond is that no one who owns the bond has to pay any taxes on it until it matures or is sold.
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