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Do all parts please asap. Thank you so much for being the best ever Part 1 Which of the following statements on bond yield is

Do all parts please asap. Thank you so much for being the best ever

Part 1

Which of the following statements on bond yield is true?

Yield-to-maturity is the net present value of all cash flows from the bond.

When looking at yields for callable bonds, we calculate the current yield instead of yield-to-maturity.

The investor does not need to reinvest the coupons to realize the estimated yield-to-maturity.

The yield of a bond may include interest payments, capital gain and income from reinvesting the coupons.

Part 2

Which of the following statements best describes a yield curve?

A graph showing the change of yield of a bond in the economic cycle

A graph showing yields of bonds from the same issuer with differing maturities

A graph showing the relationship between the bonds yield and its price

A graph showing the yields of bonds with different credit ratings

Part 3

Whats the current yield of the bond based on the information below?

  • Par value: $100
  • Coupon rate: 6%, paid semi-annually
  • Current price: $104.00
  • Number of years to maturity: 5
  • Yield to maturity: 5%

4.81%

5.26%

2.88%

5.77%

Part 4

Which of the following might cause the yield curve to steepen?

The market pricing in future interest rate rises.

Excess demand by pension funds for long-dated assets.

Central banks raising interest rates.

Concerns that the economy may soon go into recession.

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