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5. During lecture we used an online resource called ETFDB to screen for fixed income securities (i.e. bonds). Which of the following is least likely
5. During lecture we used an online resource called ETFDB to screen for fixed income securities (i.e. bonds). Which of the following is least likely to be a useful screening criteria for bonds: a. Zero Beta b. Issuer Type C. Long Duration d. Credit Quality e. High Yield (Junk Bonds) Which of the following statements is most likely TRUE: HINT: If in doubt, try it out. Make sure to think in % change (delta y/ delta x) not $ change. a. As interest rates decrease, bond prices decrease b. A high coupon bond is more sensitive to changes in interest rates than a low coupon bond C. A 10 year corporate bond is yielding 8% while a 10 year government bond (treasury) is yielding 6% d. A 30 year maturity bond is more sensitive to changes in interest rates than a 10 year maturity bond e. Bond prices are less sensitive to changes in interest rates in a low interest rate regime (e.g. post QE) than in a high interest rate regime (e.g. 1980s)
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