true or false: as the bond yield increases, the bond becomes more valuable to the investors and therefore, the price increases.
true or false: as the bond yield increases, the bond becomes more valuable to the investors and therefore, the price increases.
2. As the time to expiration becomes longer, an American call option always becomes more valuable. (a) True (b) False
The relationship between bond price and yield to maturity is convex. Therefore... since the bond pricing function is negatively sloped, when the yield increases the price decreases at a declining rate. since the bond pricing function is positively sloped, when the yield increases the price decreases at a declining rate. O since the bond pricing function is negatively sloped, when the yield declines the price decreases at a declining rate. since the bond pricing function is negatively sloped, when the...
True or false: An increase in the life of a warrant will make it more valuable.
If autonomous consumption (Ca) increases, the slope of the consumption function becomes steeper. True False
true or false: the coupon rate on a bond measures the investors return on their investment.
In general, investors prefer compounding interest on their investments instead of simple interest. True False Bond holders have first claim on assets in the event of a bankruptcy, so they are less risky than common stock. True False An asset or stock with a beta less than 1.0 means the stock is more risky than the market in general. True False
As time increases A good becomes more price elastic A good becomes less price elastic Time has no effect on price elasticity of demand only on income elasticity Time has no effect on price elasticity of demand only on income cross-price elasticity If the elasticity of demand is more elastic than the elasticity of supply then consumers bear the greater economic incidence of the tax producers bear the greater economic incidence of the tax consumers and producers evenly share the...
Suppose the interest rate and therefore the yield to maturity) increases by the same amount on Treasury bills and bonds. Between a one-year Treasury bill, and a twenty-year Treasury bond, an investor would prefer a one-year Treasury bill The following are reasons why the yield to maturity can be less than than the return of a bond except that O A. the time to maturity and the holding period are not the same OB. the coupon payment over the purchase...
If interest rates increases, the Eurodollar futures price also increases. True False
True or false? When the nerve cell is excited, it becomes more permeable to potassium ions than sodium ions