subject
Business, 29.11.2019 03:31 rachelkim999

Assume that a 10-year treasury bond has a 12% annual coupon, while a 15-year t-bond has an 8% annual coupon. assume also that the yield curve is flat, and all treasury securities have a 10% yield to maturity. which of the following statements is correct
a)if interest rates decline, the prices of both bonds will increase, but the 15-year bond would have a larger percentage increase in price.
b)if interest rates decline, the prices of both bonds will increase, but the 10-year bond would have a larger percentage increase in price.
c)the 10-year bond would sell at a discount, while the 15-year bond would sell at a premium.
d)the 10-year bond would sell at a premium, while the 15-year bond would sell at par.
e)if the yield to maturity on both bonds remains at 10% over the next year, the price of the 10-year bond would increase, but the price of the 15-year bond would fall

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 20:30, myohmyohmy
Which of the following government agencies is responsible for managing the money supply in the united states? a. the u. s. mint b. the federal reserve bank c. congress d. the department of the treasury 2b2t
Answers: 3
image
Business, 22.06.2019 05:10, srice6
1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.
Answers: 1
image
Business, 22.06.2019 06:00, aliami0306oyaj0n
Use this image to answer the following question. when the economy is operating at point b, the us congress is most likely to follow
Answers: 3
image
Business, 22.06.2019 08:40, raffigi
Which of the following statements is true regarding the reporting of outside interests and the management of conflicts? investigators are responsible for developing their own management plans for significant financial interests. the institution must report identified financial conflicts of interest to the u. s. office of research integrity. investigators must disclose their significant financial interests related to their institutional responsibilities and not just those related to a particular project. investigators must disclose all of their financial interests regardless of whether they are related to a research project.
Answers: 3
You know the right answer?
Assume that a 10-year treasury bond has a 12% annual coupon, while a 15-year t-bond has an 8% annual...

Questions in other subjects: