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...
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...
It's helpful to know how bonds and bond funds differ. For some, bonds may be the best choice; others may gain the most advantages from bond mutual funds or bond ETFs. The main difference betweenbondsandbond fundsis that bond funds are a bundle of multiple bonds, while solo bonds are no...
Answer to: a. Explain the difference between interest rates and yield rates dealing with bonds. b. Explain how do interest rates impact the value...
What is the relationship between the price of a bond and interest rates? What is meant by the "market rate" of interest, the "effective rate" of interest, and the "yield rate" of interest? What are some of the determinants of market interest rates? What is the market rate of inter...
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...
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 ...
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...
If it is sold, the new owner will be getting a 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 ...