A. lower than or equal to 1. B. higher than 1 but lower than 3. C. higher than 3. 相关知识点: 试题来源: 解析 A A is correct. The effective duration of a floating-rate bond is close to the time to next reset. As the reset for Bond #6 is annual, the effective duration of ...
A. the bond contains embedded options. B. yield curve changes are not parallel. C. the bond is a floating rate security. 相关知识点: 试题来源: 解析 A Effective duration takes into consideration embedded options in the bond. Modified duration does not consider the effect of embedded options....
Effective duration is more appropriate than modified duration as a measure of a bond’s price sensitivity to yield changes when:() A. the bond contains embedded options. B. yield curve changes are not parallel. C. the bond is a floating rate security. ...
C. the bond is a floating rate security.标准答案及解析 标准答案:A 答案解析:Effective duration takes into consideration embedded options in the bond. Modified duration does not consider the effect of embedded options. For option-free bonds, modified duration will be similar to effective duration...
Effective duration is more appropriate than modified duration as a measure of a bond’s price sensitivity to yield changes when:()A. the bond contains embedded options. B. yield curve changes are not parallel. C. the bond is a floating rate security....
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For example, a bond with a 3% nominal rate will have a real interest rate of -1%, if the inflation rate is 4%. A comparison of real and nominal interest rates can be calculated using this equation: Several economic stipulations can be derived from this formula, which lenders, borrowers,...