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T/F Duration is a measure of interest rate sensitivity and a bond with a duration of 9 should go up 9% if rates go down
- T/F Duration is a measure of interest rate sensitivity and a bond with a duration of 9 should go up 9% if rates go down 1%
- T/F A bond that matures in 8 years has a shorter duration then a bond that matures in 5 years all else equal.
- T/F A bond with a 5% coupon has a shorter duration than a bond with a 4% coupon all else equal
- T/F U.S. Treasury notes and bonds have no credit spread as they have no risk of default.
- T/F If the risk free rate is 4% and my required rate of return is 9%, the credit spread is 5%
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