Question
I. What is the economic value of a bond with the following data: nominal value value of 100, interest rate of 8% (interest is paid
I. What is the economic value of a bond with the following data: nominal value value of 100, interest rate of 8% (interest is paid once at the end of the The bond has a maturity of 3 years and an interest rate of 10%. ) 105,35 ) 100 ) 95,02 II. Which of the following characteristics of duration is true: I. An inverse relationship between duration and coupon rate. II. Duration decreases as the maturity of a bond increases, but with The duration of a bond increases with the increase in the length of the bond, but at a decreasing rate. III. The duration of a bond without coupon is always equal to its maturity time. IV. Inverse relationship between duration and yield to maturity. A) I, II and III only B)II, III and IV only C)I, III and IV only D)I, II, III and IV
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