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Please check whether my answers are right. Question 12 3 pts Which of the following statements is TRUE? A. MacDur and ModDur don't work well
Please check whether my answers are right.
Question 12 3 pts Which of the following statements is TRUE? A. MacDur and ModDur don't work well with bonds with embedded options. B. Key rate duration is can address the issue with bonds with embedded option. OC. The duration-predicted price is less than the actual price. D. Both A and Care correct Question 13 3 pts Given a semi-annual bond with YTM = 10%, Macaulay Duration=6. Three investor A,B,C with the following informations: Investment Horizon Interest rate HPR 6 years Increase 1% 10% B 6.2 years Decrease 1% Higher than 10% 5.9 years Increase 1% Lower than 10% Which investor estimates their HPR correctly? A. A only. O B.B only. O C.A and B. OD. A and CStep by Step Solution
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