Question
1. If the reinvestment rate exceeds the yield-to-maturity, the Realized Compound Yield will be greater or less than the yield-to-maturity. Which is it? 2. True
1. If the reinvestment rate exceeds the yield-to-maturity, the Realized Compound Yield will be greater or less than the yield-to-maturity. Which is it?
| 2. True or False: If there is a perfect offset of the Price- and Reinvestment-risks, the RCY will NOT be equal to the YTM. |
| 3. If the YTM is negative, the nominal value of the bonds cash flows will be greater than or less than the dollar price. Which is it? |
| 4. True or False : The Price -Yield Curve is asymptotic to the vertical axis. |
| 5. True or False: As Yields decrease down, prices increase decreasingly. |
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Finance For Non Financial Managers
Authors: Gene Siciliano
1st Edition
0071413774, 978-0071413770
