Question

maturity. par waluo of$1,000 and a 9% oftbe boed increases from 9% to 1156, then. The bons price will incrase by $e w ath a current ylicld larger thas wilarue by S62, with a current yield larger than 9% me w -ase by S62, with a curent yield lower than 9% The bond's price will increase D. The bond's price will decrease by S62, with a current yiekd lower 13) Which of the Sollowing statemests 5% coupon bond that has a YTM of 4%? ents is correct for A. B. C. The s price will increase inte future to reach par value at maturity. The bond's par value currently exceeds the bond's current price. The boats current yield is less than 5% D, The bond's coupon payments are expected to decrease in the future. 14) Which ones of the following statements are FALSE? L The yield on TIPS is alwayss lower than the yield on treasury bonds with the same maturity IL. An inverted yield curve suggests investors expect extremely high inflation in the future IIL. The yicld of Investment-grade bonds is always higher than the yield of Junk bonds A. I and II only B. I and III only C. II and III only I, II, and III D. 5) Two years ago, you purchased a 5-year, 4% annual coupon bond for S935. Today the bond has a YTM of4% and you decide to sell it, what was your holding period return on this investment? 4.00% 6.95% 15.51% It cannot be determined from the information provided A, B. С. D.

Answer 1

I can only answer 1 question at a time so I am solving question 12.

2) Sond's initial pice-looo Bond's Vice こgo 1.11 (00女 .ond's (sice will duae G2 433 0.036 4z8 Option &

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