the higher the interest rate is the higher the duration, all else being equal t/f?
the higher the interest rate is the higher the duration, all else being equal
t/f?
Homework Answers
The statement is true.
In case of a bond valuation, the higher the duration of bond, the greater the sensitivity of its interest rate changes. If there is increase in duration of bond, there will be greater rise in interest rates than in case of shorter time period. Thus there is greater effect in case of long term bond than in case of short term bonds.
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the higher the interest rate is the higher the duration, all
else being equal
t/f?
T/F Duration is a measure of interest rate sensitivity and a bond with a duration of...
T/F Duration is a measure of interest rate sensitivity and a bond with a duration of 9 should go up 9% if rates go down 1% T/F A bond that matures in 8 years has a shorter duration then a bond that matures in 5 years all else equal. T/F A bond with a 5% coupon has a shorter duration than a bond with a 4% coupon all else equal T/F U.S. Treasury notes and bonds have no credit spread...
All else equal, which of the answers below will result in a higher future value ?...
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all else being equal, a company with a high operating leverage will have All else being equal, a company with a hig...
all else being equal, a company with a high operating leverage
will have
All else being equal, a company with a high operating leverage will have relatively low risk. relatively high contribution margin ratio. relatively high variable costs. relatively low fixed costs.
All else being equal, with an Fixed Rate Mortgage (FRM) compared to an Adjustable Rate Mortgage (ARM), there is ________...
All else being equal, with an Fixed Rate Mortgage (FRM) compared to an Adjustable Rate Mortgage (ARM), there is __________ default risk and ___________ prepayment risk. A. equal; equal B. less; less C. greater; less D. less; greater
All else being equal, a non-GAAP disclosure that identifies stock-based compensation expense will show Higher non-GAAP...
All else being equal, a non-GAAP disclosure that identifies stock-based compensation expense will show Higher non-GAAP operating income than GAAP operating income Lower non-GAAP operating income than GAAP operating income No difference between GAAP and non-GAAP operating income No difference between GAAP and non-GAAP net income
luck! Question 3 All else being equal, which of the following statement about time value of...
luck! Question 3 All else being equal, which of the following statement about time value of money is NOT correct? The higher the discount rate, the lower the present value The higher the interest rate, the higher the future value The higher the number of periods, the lower the present value The higher the present value, the lower the future value - Previous Quiz sa required precision (ie, the number of digits after the decimal point). Good luck! Question 4...
5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the...
5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the higher a company's inventory turnover rate, the better. 7. All else being equal, a higher financial leverage will increase a company's debt rating and decrease the interest rate it must pay. 8. Vertical analysis examines changes in financial data across time. 9. A current ratio greater than 1.0 is generally desirable for a company. 10. Return on assets can be disaggregated into profit margin...
Duration is A) the elasticity of a security's value to small coupon changes. B) the elasticity...
Duration is A) the elasticity of a security's value to small coupon changes. B) the elasticity of a security's value to market interest rate changes. C) the time until the investor recovers the price of the bond in today's dollars D) higher for high coupon bonds and lower for low coupon bonds, all else being equal E) the second derivative of the bond price formula with respect to the YTM
All else being equal, for each of the circumstances below what will happen to the calculated...
All else being equal, for each of the circumstances below what will happen to the calculated EOQ level? (1.5) Interest rates rise: EOQ goes: Up Down No Change A big cost per unit increase EOQ goes: Up Down No Change Retail price and margin increase without any increase in cost basis: EOQ goes: Up Down No Change
A firm with greater operating leverage would have a higher WACC. (all else equal). True or...
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all else being equal, a company with a high operating leverage
will have
All else being equal, a company with a high operating leverage will have relatively low risk. relatively high contribution margin ratio. relatively high variable costs. relatively low fixed costs.
luck! Question 3 All else being equal, which of the following statement about time value of money is NOT correct? The higher the discount rate, the lower the present value The higher the interest rate, the higher the future value The higher the number of periods, the lower the present value The higher the present value, the lower the future value - Previous Quiz sa required precision (ie, the number of digits after the decimal point). Good luck! Question 4...
5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the higher a company's inventory turnover rate, the better. 7. All else being equal, a higher financial leverage will increase a company's debt rating and decrease the interest rate it must pay. 8. Vertical analysis examines changes in financial data across time. 9. A current ratio greater than 1.0 is generally desirable for a company. 10. Return on assets can be disaggregated into profit margin...
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