C. a short-term bond. 正确答案:B 分享到: 答案解析: Duration is a linear measure of the relationship between a bond’s price and yield. The true relationship is not linear as measured by the convexity. When convexity is higher, duration will be less accurate in predicting a bond’s ...
Duration is a linear measure of the relationship between a bond's price and yield. The true relationship is not linear as measured by the convexity. When convexity is higher, duration will be less accurate in predicting a bond's price for a given change in interest rates. Short-term bonds...
The main difference between bonds and bond funds is that bond funds are a bundle of multiple bonds, while solo bonds are not. You should know more about bonds and bond funds before buying either to make sure you're getting the one that is right for you.1 What's the Difference Between...
Bid Yield The bid yield is always higher than the asked yield because the lower the dollar price, the higher the yield. When a trader is bidding on a bond, he must buy the bond at a low enough price that he can add his trader's mark-up and sell the bond at a higher dollar price...
Bid yields are always higher than ask yields, because if the buyer were willing to take a yield that was equal to or less than the ask yield, then the seller would sell the bond to the buyer at that corresponding price. As with bid and ask prices, the spread between bid and ask yiel...
Havingbondsin your portfolio along with stocks will help to offset any losses from the stocks should those companies suffer a drop-in share price. There are many factors that contribute to share price and even experts have a hard time predicting the changes in price. Having bonds to balance ...
7、The difference between the yield on a zero-coupon, default-free nominal bond and the yield on a zero-coupon, default-free real bond of the same maturity reflects:【单选题】 A. investors’ expectations about future inflation only. B. a premium for the uncertainty of future inflation only...
When it comes to the world of finance and economics, two terms that often come up are financial investment and economic investment. While these terms may sound similar, they refer to distinct concepts with different implications. Understanding the differences between financial investment and economic ...
In this way, the time until maturity, the bond's coupon rate, current price, and the difference between price and face value are all considered. What Is the Difference Between Coupon Rate and Yield? The coupon rate is the stated periodic interest payment due to the bondholder at specifie...
bond that has lost part of its yield. That sold bond still has a par value of $1,000, but its effective yield to maturity has fallen due to the passing of time. If the original owner sells it, it may be sold at a spot price that is discounted to compensate for the lost ...