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1- Holding other factors constant, the interest rate risk of a coupon bond is higher when the bond's A- YTM is highrt B- coupon rate
1- Holding other factors constant, the interest rate risk of a coupon bond is higher when the bond's
A- YTM is highrt
B- coupon rate is highrt
c- term to maturity is higher
2- x has an expected rate of return of 13%, and a beta of 1.30. the market expected rate of return is 8%, and the risk free rate is 3%. The alpha of x stock is ........?
3- If the bond's coupon was greater than yield to maturity, the modified duration would be..............?
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