首页 投资学第7版TestBank答案15

投资学第7版TestBank答案15

举报
开通vip

投资学第7版TestBank答案15..DOC资料.MultipleChoiceQuestions1.Thetermstructureofinterestratesis:A)Therelationshipbetweentheratesofinterestonallsecurities.B)Therelationshipbetweentheinterestrateonasecurityanditstimetomaturity.C)Therelationshipbetweentheyieldonabondanditsdefaultrate.D)Allof...

投资学第7版TestBank答案15
..DOC资料.MultipleChoiceQuestions1.Thetermstructureofinterestratesis:A)Therelationshipbetweentheratesofinterestonallsecurities.B)Therelationshipbetweentheinterestrateonasecurityanditstimetomaturity.C)Therelationshipbetweentheyieldonabondanditsdefaultrate.D)Alloftheabove.E)Noneoftheabove.Answer:BDifficulty:EasyRationale:Thetermstructureofinterestratesistherelationshipbetweentwovariables,yearsandyieldtomaturity(holdingallelseconstant).2.Theyieldcurveshowsatanypointintime:A)Therelationshipbetweentheyieldonabondandthedurationofthebond.B)Therelationshipbetweenthecouponrateonabondandtimetomaturityofthebond.C)Therelationshipbetweenyieldonabondandthetimetomaturityonthebond.D)Alloftheabove.E)Noneoftheabove.Answer:CDifficulty:Easy3.Aninvertedyieldcurveimpliesthat:A)Long-terminterestratesarelowerthanshort-terminterestrates.B)Long-terminterestratesarehigherthanshort-terminterestrates.C)Long-terminterestratesarethesameasshort-terminterestrates.D)Intermediateterminterestratesarehigherthaneithershort-orlong-terminterestrates.E)noneoftheabove.Answer:ADifficulty:EasyRationale:Theinverted,ordownwardsloping,yieldcurveisoneinwhichshort-termratesarehigherthanlong-termrates.Theinvertedyieldcurvehasbeenobservedfrequently,althoughnotasfrequentlyastheupwardsloping,ornormal,yieldcurve.4.Anupwardslopingyieldcurveisa(n)_______yieldcurve.A)normal.B)humped.C)inverted.D)flat.E)noneoftheabove.Answer:ADifficulty:EasyRationale:Theupwardslopingyieldcurveisreferredtoasthenormalyieldcurve,probablybecause,historically,theupwardslopingyieldcurveistheshapethathasbeenobservedmostfrequently.5.Accordingtotheexpectationshypothesis,anormalyieldcurveimpliesthatA)interestratesareexpectedtoremainstableinthefuture.B)interestratesareexpectedtodeclineinthefuture.C)interestratesareexpectedtoincreaseinthefuture.D)interestratesareexpectedtodeclinefirst,thenincrease.E)interestratesareexpectedtoincreasefirst,thendecrease.Answer:CDifficulty:EasyRationale:Anupwardslopingyieldcurveisbasedontheexpectationthatshort-terminterestrateswillincrease.6.Whichofthefollowingisnotproposedasanexplanationforthetermstructureofinterestrates?A)Theexpectationstheory.B)Theliquiditypreferencetheory.C)Themarketsegmentationtheory.D)Modernportfoliotheory.E)A,B,andC.Answer:DDifficulty:EasyRationale:A,B,andCarealltheoriesthathavebeenproposedtoexplainthetermstructure.7.TheexpectationstheoryofthetermstructureofinterestratesstatesthatA)forwardratesaredeterminedbyinvestors'expectationsoffutureinterestrates.B)forwardratesexceedtheexpectedfutureinterestrates.C)yieldsonlong-andshort-maturitybondsaredeterminedbythesupplyanddemandforthesecurities.D)alloftheabove.E)noneoftheabove.Answer:ADifficulty:EasyRationale:Theforwardrateequalsthemarketconsensusexpectationoffutureshortinterestrates.8.Whichofthefollowingtheoriesstatethattheshapeoftheyieldcurveisessentiallydeterminedbythesupplyanddemandsforlong-andshort-maturitybonds?A)Liquiditypreferencetheory.B)Expectationstheory.C)Marketsegmentationtheory.D)Alloftheabove.E)Noneoftheabove.Answer:CDifficulty:EasyRationale:Marketsegmentationtheorystatesthatthemarketsfordifferentmaturitiesareseparatemarkets,andthatinterestratesatthedifferentmaturitiesaredeterminedbytheintersectionoftherespectivesupplyanddemandcurves.9.Accordingtothe"liquiditypreference"theoryofthetermstructureofinterestrates,theyieldcurveusuallyshouldbe:A)inverted.B)normal.C)upwardslopingD)AandB.E)BandC.Answer:EDifficulty:EasyRationale:Accordingtotheliquiditypreferencetheory,investorswouldprefertobeliquidratherthanilliquid.Inordertoacceptamoreilliquidinvestment,investorsrequirealiquiditypremiumandthenormal,orupwardsloping,yieldcurveresults.Usethefollowingtoanswerquestions10-13:Supposethatallinvestorsexpectthatinterestratesforthe4yearswillbeasfollows:10.Whatisthepriceof3-yearzerocouponbondwithaparvalueof$1,000?A)$863.83B)$816.58C)$772.18D)$765.55E)noneoftheaboveAnswer:BDifficulty:ModerateRationale:$1,000/(1.05)(1.07)(1.09)=$816.5811.Ifyouhavejustpurchaseda4-yearzerocouponbond,whatwouldbetheexpectedrateofreturnonyourinvestmentinthefirstyeariftheimpliedforwardratesstaythesame?(Parvalueofthebond=$1,000)A)5%B)7%C)9%D)10%E)noneoftheaboveAnswer:ADifficulty:ModerateRationale:Theforwardinterestrategivenforthefirstyearoftheinvestmentisgivenas5%(seetableabove).12.Whatisthepriceofa2-yearmaturitybondwitha10%couponratepaidannually?(Parvalue=$1,000)A)$1,092B)$1,054C)$1,000D)$1,073E)noneoftheaboveAnswer:DDifficulty:ModerateRationale:[(1.05)(1.07)]1/2-1=6%;FV=1000,n=2,PMT=100,i=6,PV=$1,073.3413.Whatistheyieldtomaturityofa3-yearzerocouponbond?A)7.00%B)9.00%C)6.99%D)7.49%E)noneoftheaboveAnswer:CDifficulty:ModerateRationale:[(1.05)(1.07)(1.09)]1/3-1=6.99.Usethefollowingtoanswerquestions14-16:Thefollowingisalistofpricesforzerocouponbondswithdifferentmaturitiesandparvalueof$1,000.14.Whatis,accordingtotheexpectationstheory,theexpectedforwardrateinthethirdyear?A)7.00%B)7.33%C)9.00%D)11.19%E)noneoftheaboveAnswer:CDifficulty:ModerateRationale:881.68/808.88-1=9%15.Whatistheyieldtomaturityona3-yearzerocouponbond?A)6.37%B)9.00%C)7.33%D)10.00%E)noneoftheaboveAnswer:CDifficulty:ModerateRationale:(1000/808.81)1/3-1=7.33%16.Whatisthepriceofa4-yearmaturitybondwitha12%couponratepaidannually?(Parvalue=$1,000)A)$742.09B)$1,222.09C)$1,000.00D)$1,141.92E)noneoftheaboveAnswer:DDifficulty:DifficultRationale:(1000/742.09)1/4-1=7.74%;FV=1000,PMT=120,n=4,i=7.74,PV=$1,141.9217.ThemarketsegmentationtheoryofthetermstructureofinterestratesA)theoreticallycanexplainallshapesofyieldcurves.B)definitelyholdsinthe"realworld".C)assumesthatmarketsfordifferentmaturitiesareseparatemarkets.D)AandB.E)AandC.Answer:EDifficulty:EasyRationale:Althoughthistheoryisquitetidytheoretically,bothinvestorsandborrowswilldepartfromtheir"preferredmaturityhabitats"ifyieldsonalternativematuritiesareattractiveenough.18.AnupwardslopingyieldcurveA)maybeanindicationthatinterestratesareexpectedtoincrease.B)mayincorporatealiquiditypremium.C)mayreflecttheconfoundingoftheliquiditypremiumwithinterestrateexpectations.D)alloftheabove.E)noneoftheabove.Answer:DDifficulty:EasyRationale:Oneoftheproblemsofthemostcommonlyusedexplanationoftermstructure,theexpectationshypothesis,isthatitisdifficulttoseparateouttheliquiditypremiumfrominterestrateexpectations.19.The"break-even"interestrateforyearnthatequatesthereturnonann-periodzero-couponbondtothatofann-1-periodzero-couponbondrolledoverintoaone-yearbondinyearnisdefinedasA)theforwardrate.B)theshortrate.C)theyieldtomaturity.D)thediscountrate.E)Noneoftheabove.Answer:ADifficulty:EasyRationale:Theforwardrateforyearn,fn,isthe"break-even"interestrateforyearnthatequatesthereturnonann-periodzero-couponbondtothatofann-1-periodzero-couponbondrolledoverintoaone-yearbondinyearn.20.Whencomputingyieldtomaturity,theimplicitreinvestmentassumptionisthattheinterestpaymentsarereinvestedatthe:A)Couponrate.B)Currentyield.C)Yieldtomaturityatthetimeoftheinvestment.D)Prevailingyieldtomaturityatthetimeinterestpaymentsarereceived.E)Theaverageyieldtomaturitythroughouttheinvestmentperiod.Answer:CDifficulty:ModerateRationale:Inordertoearntheyieldtomaturityquotedatthetimeoftheinvestment,couponsmustbereinvestedatthatrate.21.Whichoneofthefollowingstatementsistrue?A)Theexpectationshypothesisindicatesaflatyieldcurveifanticipatedfutureshort-termratesexceedthecurrentshort-termrate.B)Thebasicconclusionoftheexpectationshypothesisisthatthelong-termrateisequaltotheanticipatedlong-termrate.C)Theliquiditypreferencehypothesisindicatesthat,allotherthingsbeingequal,longermaturitieswillhaveloweryields.D)Thesegmentationhypothesiscontendsthatborrowsandlendersareconstrainedtoparticularsegmentsoftheyieldcurve.E)Noneoftheabove.Answer:DDifficulty:ModerateRationale:Aflatyieldcurveindicatesexpectationsofexistingrates.Expectationshypothesisstatesthattheforwardrateequalsthemarketconsensusofexpectationsoffutureshortinterestrates.ThereverseofCistrue.22.Theconceptsofspotandforwardratesaremostcloselyassociatedwithwhichoneofthefollowingexplanationsofthetermstructureofinterestrates.A)SegmentedMarkettheoryB)ExpectationsHypothesisC)PreferredHabitatHypothesisD)LiquidityPremiumtheoryE)NoneoftheaboveAnswer:BDifficulty:ModerateRationale:Onlytheexpectationshypothesisisbasedonspotandforwardrates.AandCassumeseparatemarketsfordifferentmaturities;liquiditypremiumassumeshigheryieldsforlongermaturities.Usethefollowingtoanswerquestion23:23.Giventhebonddescribedabove,ifinterestwerepaidsemi-annually(ratherthanannually),andthebondcontinuedtobepricedat$850,theresultingeffectiveannualyieldtomaturitywouldbe:A)Lessthan12%B)Morethan12%C)12%D)CannotbedeterminedE)NoneoftheaboveAnswer:BDifficulty:ModerateRationale:FV=1000,PV=-850,PMT=50,n=40,i=5.9964(semi-annual);(1.059964)2-1=12.35%.24.InterestratesmightdeclineA)becauserealinterestratesareexpectedtodecline.B)becausetheinflationrateisexpectedtodecline.C)becausenominalinterestratesareexpectedtoincrease.D)AandB.E)BandC.Answer:DDifficulty:EasyRationale:Thenominalrateiscomprisedoftherealinterestrateplustheexpectedinflationrate.25.Forwardrates____________futureshortratesbecause____________.A)areequalto;theyarebothextractedfromyieldstomaturity.B)areequalto;theyareperfectforecasts.C)differfrom;theyareimperfectforecasts.D)differfrom;forwardratesareestimatedfromdealerquoteswhilefutureshortratesareextractedfromyieldstomaturity.E)areequalto;althoughtheyareestimatedfromdifferentsourcestheybothareusedbytraderstomakepurchasedecisions.Answer:CDifficulty:EasyRationale:Forwardratesaretheestimatesoffutureshortratesextractedfromyieldstomaturitybuttheyarenotperfectforecastsbecausethefuturecannotbepredictedwithcertainty;thereforetheywillusuallydiffer.26.ThepureyieldcurvecanbeestimatedA)byusingzero-couponbonds.B)byusingcouponbondsifeachcouponistreatedasaseparate"zero."C)byusingcorporatebondswithdifferentriskratings.D)byestimatingliquiditypremiumsfordifferentmaturities.E)AandB.Answer:EDifficulty:ModerateRationale:Thepureyieldcurveiscalculatedusingzerocouponbonds,butcouponbondsmaybeusedifeachcouponistreatedasaseparate"zero."27.TheontherunyieldcurveisA)aplotofyieldasafunctionofmaturityforzero-couponbonds.B)aplotofyieldasafunctionofmaturityforrecentlyissuedcouponbondstradingatornearpar.C)aplotofyieldasafunctionofmaturityforcorporatebondswithdifferentriskratings.D)aplotofliquiditypremiumsfordifferentmaturities.E)AandB.Answer:BDifficulty:Moderate28.ThemarketsegmentationandpreferredhabitattheoriesoftermstructureA)areidentical.B)varyinthatmarketsegmentationisrarelyacceptedtoday.C)varyinthatmarketsegmentationmaintainsthatborrowersandlenderswillnotdepartfromtheirpreferredmaturitiesandpreferredhabitatmaintainsthatmarketparticipantswilldepartfrompreferredmaturitiesifyieldsonothermaturitiesareattractiveenough.D)AandB.E)BandC.Answer:EDifficulty:ModerateRationale:Borrowersandlenderswilldepartfromtheirpreferredmaturityhabitatsifyieldsareattractiveenough;thus,themarketsegmentationhypothesisisnolongerreadilyaccepted.29.TheyieldcurveA)isagraphicaldepictionoftermstructureofinterestrates.B)isusuallydepictedforU.S.Treasuriesinordertoholdriskconstantacrossmaturitiesandyields.C)isusuallydepictedforcorporatebondsofdifferentratings.D)AandB.E)AandC.Answer:DDifficulty:EasyRationale:Theyieldcurve(yieldsvs.maturities,allelseequal)isdepictedforU.S.Treasuriesmorefrequentlythanforcorporatebonds,astheriskisconstantacrossmaturitiesforTreasuries.Usethefollowingtoanswerquestions30-32:30.Whatshouldthepurchasepriceofa2-yearzerocouponbondbeifitispurchasedatthebeginningofyear2andhasfacevalueof$1,000?A)$877.54B)$888.33C)$883.32D)$893.36E)$871.80Answer:ADifficulty:DifficultRationale:$1,000/[(1.064)(1.071)]=$877.5431.Whatwouldtheyieldtomaturitybeonafour-yearzerocouponbondpurchasedtoday?A)5.80%B)7.30%C)6.65%D)7.25%E)noneoftheabove.Answer:CDifficulty:ModerateRationale:[(1.058)(1.064)(1.071)(1.073)]1/4-1=6.65%32.Calculatethepriceatthebeginningofyear1ofa10%annualcouponbondwithfacevalue$1,000and5yearstomaturity.A)$1,105B)$1,132C)$1,179D)$1,150E)$1,119Answer:BDifficulty:DifficultRationale:i=[(1.058)(1.064)(1.071)(1.073)(1.074)]1/5-1=6.8%;FV=1000,PMT=100,n=5,i=6.8,PV=$1,131.9133.Giventheyieldona3yearzero-couponbondis7.2%andforwardratesof6.1%inyear1and6.9%inyear2,whatmustbetheforwardrateinyear3?A)8.4%B)8.6%C)8.1%D)8.9%E)noneoftheabove.Answer:BDifficulty:ModerateRationale:f3=(1.072)3/[(1.061)(1.069)]-1=8.6%34.AninvertedyieldcurveisoneA)withahumpinthemiddle.B)constructedbyusingconvertiblebonds.C)thatisrelativelyflat.D)thatplotstheinverserelationshipbetweenbondpricesandbondyields.E)thatslopesdownward.Answer:EDifficulty:EasyRationale:Aninvertedyieldcurveoccurswhenshort-termratesarehigherthanlong-termrates.35.Investorscanusepubliclyavailablefinancialdatetodeterminewhichofthefollowing?theshapeoftheyieldcurvefutureshort-termratesthedirectiontheDowindexesareheadingtheactionstobetakenbytheFederalReserveA)IandIIB)IandIIIC)I,II,andIIID)I,III,andIVE)I,II,III,andIVAnswer:ADifficulty:ModerateRationale:Onlytheshapeoftheyieldcurveandfutureinferredratescanbedetermined.ThemovementoftheDowIndexesandFederalReservepolicyareinfluencedbytermstructurebutaredeterminedbymanyothervariablesalso.36.Whichofthefollowingcombinationswillresultinasharplyincreasingyieldcurve?A)increasingexpectedshortratesandincreasingliquiditypremiumsB)decreasingexpectedshortratesandincreasingliquiditypremiumsC)increasingexpectedshortratesanddecreasingliquiditypremiumsD)increasingexpectedshortratesandconstantliquiditypremiumsE)constantexpectedshortratesandincreasingliquiditypremiumsAnswer:ADifficulty:ModerateRationale:Bothoftheforceswillacttoincreasetheslopeoftheyieldcurve.37.TheyieldcurveisacomponentofA)theDowJonesIndustrialAverage.B)theconsumerpriceindex.C)theindexofleadingeconomicindicators.D)theproducerpriceindex.E)theinflationindex.Answer:CDifficulty:EasyRationale:Sincetheyieldcurveisoftenusedtoforecastthebusinesscycle,itisusedasoneoftheleadingeconomicindicators.38.ThemostrecentlyissuedTreasurysecuritiesarecalledA)ontherun.B)offtherun.C)onthemarket.D)offthemarket.E)noneoftheabove.Answer:ADifficulty:EasyUsethefollowingtoanswerquestions39-42:Supposethatallinvestorsexpectthatinterestratesforthe4yearswillbeasfollows:39.Whatisthepriceof3-yearzerocouponbondwithaparvalueof$1,000?A)$889.08B)$816.58C)$772.18D)$765.55E)noneoftheaboveAnswer:ADifficulty:ModerateRationale:$1,000/(1.03)(1.04)(1.05)=$889.0840.Ifyouhavejustpurchaseda4-yearzerocouponbond,whatwouldbetheexpectedrateofreturnonyourinvestmentinthefirstyeariftheimpliedforwardratesstaythesame?(Parvalueofthebond=$1,000)A)5%B)3%C)9%D)10%E)noneoftheaboveAnswer:BDifficulty:ModerateRationale:Theforwardinterestrategivenforthefirstyearoftheinvestmentisgivenas3%(seetableabove).41.Whatisthepriceofa2-yearmaturitybondwitha5%couponratepaidannually?(Parvalue=$1,000)A)$1,092.97B)$1,054.24C)$1,028.51D)$1,073.34E)noneoftheaboveAnswer:CDifficulty:ModerateRationale:[(1.03)(1.04)]1/2-1=3.5%;FV=1000,n=2,PMT=50,i=3.5,PV=$1,028.5142.Whatistheyieldtomaturityofa3-yearzerocouponbond?A)7.00%B)9.00%C)6.99%D)4%E)noneoftheaboveAnswer:DDifficulty:ModerateRationale:[(1.03)(1.04)(1.05)]1/3-1=4%.Usethefollowingtoanswerquestions43-46:Thefollowingisalistofpricesforzerocouponbondswithdifferentmaturitiesandparvalueof$1,000.43.Whatis,accordingtotheexpectationstheory,theexpectedforwardrateinthethirdyear?A)7.23B)9.37%C)9.00%D)10.9%E)noneoftheaboveAnswer:BDifficulty:ModerateRationale:862.57/788.66-1=9.37%44.Whatistheyieldtomaturityona3-yearzerocouponbond?A)6.37%B)9.00%C)7.33%D)8.24%E)noneoftheaboveAnswer:DDifficulty:ModerateRationale:(1000/788.66)1/3-1=8.24%45.Whatisthepriceofa4-yearmaturitybondwitha10%couponratepaidannually?(Parvalue=$1,000)A)$742.09B)$1,222.09C)$1,035.66D)$1,141.84E)noneoftheaboveAnswer:CDifficulty:DifficultRationale:(1000/711.00)1/4-1=8.9%;FV=1000,PMT=100,n=4,i=8.9,PV=$1,035.6646.Youhavepurchaseda4-yearmaturitybondwitha9%couponratepaidannually.Thebondhasaparvalueof$1,000.Whatwouldthepriceofthebondbeoneyearfromnowiftheimpliedforwardratesstaythesame?A)$995.63B)$1,108.88C)$1,000.00D)$1,042.78E)noneoftheaboveAnswer:ADifficulty:DifficultRationale:(925.16/711.00)]1/3-1.0=9.17%;FV=1000,PMT=90,n=3,i=9.17,PV=$995.63Usethefollowingtoanswerquestion47:47.Giventhebonddescribedabove,ifinterestwerepaidsemi-annually(ratherthanannually),andthebondcontinuedtobepricedat$917.99,theresultingeffectiveannualyieldtomaturitywouldbe:A)Lessthan10%B)Morethan10%C)10%D)CannotbedeterminedE)NoneoftheaboveAnswer:BDifficulty:ModerateRationale:FV=1000,PV=-917.99,PMT=45,n=36,i=4.995325(semi-annual);(1.4995325)2-1=10.24%.Usethefollowingtoanswerquestions48-50:48.Whatshouldthepurchasepriceofa2-yearzerocouponbondbeifitispurchasedatthebeginningofyear2andhasfacevalueof$1,000?A)$877.54B)$888.33C)$883.32D)$894.21E)$871.80Answer:DDifficulty:DifficultRationale:$1,000/[(1.055)(1.06)]=$894.2149.Whatwouldtheyieldtomaturitybeonafour-yearzerocouponbondpurchasedtoday?A)5.75%B)6.30%C)5.65%D)5.25%E)noneoftheabove.Answer:ADifficulty:ModerateRationale:[(1.05)(1.055)(1.06)(1.065)]1/4-1=5.75%50.Calculatethepriceatthebeginningofyear1ofan8%annualcouponbondwithfacevalue$1,000and5yearstomaturity.A)$1,105.47B)$1,131.91C)$1,084.25D)$1,150.01E)$719.75Answer:CDifficulty:DifficultRationale:i=[(1.05)(1.055)(1.06)(1.065)(1.07)]1/5-1=6%;FV=1000,PMT=80,n=5,i=6,PV=$1084.2551.Giventheyieldona3yearzero-couponbondis7%andforwardratesof6%inyear1and6.5%inyear2,whatmustbetheforwardrateinyear3?A)7.2%B)8.6%C)8.5%D)6.9%E)noneoftheabove.Answer:CDifficulty:ModerateRationale:f3=(1.07)3/[(1.06)(1.065)]-1=8.5%Usethefollowingtoanswerquestions52-61:52.Whatshouldthepurchasepriceofa1-yearzerocouponbondbeifitispurchasedtodayandhasfacevalueof$1,000?A)$966.37B)$912.87C)$950.21D)$956.02E)$945.51Answer:DDifficulty:DifficultRationale:$1,000/(1.046)=$956.0253.Whatshouldthepurchasepriceofa2-yearzerocouponbondbeifitispurchasedtodayandhasfacevalueof$1,000?A)$966.87B)$911.37C)$950.21D)$956.02E)$945.51Answer:BDifficulty:DifficultRationale:$1,000/[(1.046)(1.049)]=$911.3754.Whatshouldthepurchasepriceofa3-yearzerocouponbondbeifitispurchasedtodayandhasfacevalueof$1,000?A)$887.42B)$871.12C)$879.54D)$856.02E)$866.32Answer:EDifficulty:DifficultRationale:$1,000/[(1.046)(1.049)(1.052)]=$866.3255.Whatshouldthepurchasepriceofa4-yearzerocouponbondbeifitispurchasedtodayandhasfacevalueof$1,000?A)$887.42B)$821.15C)$879.54D)$856.02E)$866.32Answer:BDifficulty:DifficultRationale:$1,000/[(1.046)(1.049)(1.052)(1.055)]=$821.1556.Whatshouldthepurchasepriceofa5-yearzerocouponbondbeifitispurchasedtodayandhasfacevalueof$1,000?A)$776.14B)$721.15C)$779.54D)$756.02E)$766.32Answer:ADifficulty:DifficultRationale:$1,000/[(1.046)(1.049)(1.052)(1.055)(1.058)]=$776.1457.Whatistheyieldtomaturityofa1-yearbond?A)4.6%B)4.9%C)5.2%D)5.5%E)5.8%Answer:ADifficulty:ModerateRationale:4.6%(givenintable)58.Whatistheyieldtomaturityofa5-yearbond?A)4.6%B)4.9%C)5.2%D)5.5%E)5.8%Answer:CDifficulty:ModerateRationale:[(1.046)(1.049)(1.052)(1.055)(1.058)]1/5-1=5.2%59.Whatistheyieldtomaturityofa4-yearbond?A)4.69%B)4.95%C)5.02%D)5.05%E)5.08%Answer:CDifficulty:ModerateRationale:[(1.046)(1.049)(1.052)(1.055)]1/4-1=5.05%60.Whatistheyieldtomaturityofa3-yearbond?A)4.6%B)4.9%C)5.2%D)5.5%E)5.8%Answer:BDifficulty:ModerateRationale:[(1.046)(1.049)(1.052)]1/3-1=4.9%61.Whatistheyieldtomaturityofa2-yearbond?A)4.6%B)4.9%C)5.2%D)4.7%E)5.8%Answer:DDifficulty:ModerateRationale:[(1.046)(1.049)]1/2-1=4.7%EssayQuestions62.Discussthethreetheoriesofthetermstructureofinterestrates.Includeinyourdiscussionthedifferencesinthetheories,andtheadvantages/disadvantagesofeach.Difficulty:ModerateAnswer:Theexpectationshypothesisisthemostcommonlyacceptedtheoryoftermstructure.Thetheorystatesthattheforwardrateequalsthemarketconsensusexpectationoffutureshort-termrates.Thus,yieldtomaturityisdeterminedsolelybycurrentandexpectedfutureone-periodinterestrates.Anupwardsloping,ornormal,yieldcurvewouldindicatethatinvestorsanticipateanincreaseininterestrates.Aninverted,ordownwardsloping,yieldcurvewouldindicateanexpectationofdecreasedinterestrates.Ahorizontalyieldcurvewouldindicateanexpectationofnointerestratechanges.Theliquiditypreferencetheoryoftermstructuremaintainsthatshort-terminvestorsdominatethemarket;thus,ingeneral,theforwardrateexceedstheexpectedshort-termrate.Inotherwords,inve
本文档为【投资学第7版TestBank答案15】,请使用软件OFFICE或WPS软件打开。作品中的文字与图均可以修改和编辑, 图片更改请在作品中右键图片并更换,文字修改请直接点击文字进行修改,也可以新增和删除文档中的内容。
该文档来自用户分享,如有侵权行为请发邮件ishare@vip.sina.com联系网站客服,我们会及时删除。
[版权声明] 本站所有资料为用户分享产生,若发现您的权利被侵害,请联系客服邮件isharekefu@iask.cn,我们尽快处理。
本作品所展示的图片、画像、字体、音乐的版权可能需版权方额外授权,请谨慎使用。
网站提供的党政主题相关内容(国旗、国徽、党徽..)目的在于配合国家政策宣传,仅限个人学习分享使用,禁止用于任何广告和商用目的。
下载需要: 免费 已有0 人下载
最新资料
资料动态
专题动态
个人认证用户
is_529050
暂无简介~
格式:doc
大小:97KB
软件:Word
页数:32
分类:
上传时间:2022-01-13
浏览量:0