NAME

Question types


Start with


Question limit

of 10 available terms

Advertisement Upgrade to remove ads
Print test

4 Written questions

3 Multiple choice questions

  1. the price a firm has to pay to recall a bond; generally equal to the principal amount plus some interest
  2. a bond that sells below its par value. this occurs whenever the going rate of interest rises above the coupon rate
  3. the risk that income from a bond portfolio will vary because cash flows must be reinvested at current market rates

3 True/False questions

  1. interest (current) yieldthe risk of changes in bond prices to which investors are exposed due to challenging interest rates

          

  2. capital gains yieldthe price a firm has to pay to recall a bond; generally equal to the principal amount plus some interest

          

  3. yield to maturity (YTM)the average rate of return earned on a bond if it is held until the first call date