Question
please help me with all these please please As interest rates in the overall market increase, the prices of existing bonds (already trading in the
please help me with all these please please
As interest rates in the overall market increase, the prices of existing bonds (already trading in the market) with fixed coupon rates will:
decrease | ||
stay the same | ||
increase. | ||
bond prices are unrelated to market interest rates |
The required rate of return of a bond is, in theory, made up of:
The nominal risk free rate plus the default risk premium, maturity risk premium and liquidity risk premium | ||
The real risk free rate plus the default risk premium and maturity risk premium | ||
The real risk free rate plus the default risk premium, maturity risk premium and liquidity risk premium | ||
The nominal risk free rate plus the default risk premium |
A junk bond is___________________.
a low yield bond relative to A rated corporate bonds. | ||
a bond which is rated BBB or lower by rating agencies | ||
an unrated bond | ||
a bond that will earn a higher spread relative to a Treasury than a AAA rated bond will yield. |
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