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The Macaulay duration is the weighted average number of coupon periods until a bond’s scheduled cash flows.
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- Current yield is used to determine Seleccione una: a. A portion of the yield on an investment b. The payout of a bond investment c. The amount of money a bond investor will earn d. The coupon rate of a bond investmentExplain the relationship between the price of a bond, coupon rate, yield and time.Explain the difference between the coupon rate and the required return on a bond.
- The dollar interest received divided by the market price of the bond is called the Group of answer choices A. current yield. B. yield to maturity. C. coupon rate. D. par value.Duration is a measure of __________________. A) yield to maturity of a bond. B) coupon rate of a bond C) price of a bond D) effective maturity of a bondDefine each of the following terms:g. Current yield (on a bond); yield to maturity (YTM); yield to call (YTC)
- The yield to maturity on a bond a is fixed in the indenture. b is lower for higher-risk bonds. c is the required return on the bond. d is generally equal to the coupon interest rate.The formula (Coupon Payment / Current bond price) calculates the _______. Multiple Choice Current yield. Risk-free rate. Coupon rate. Yield to maturity Bond premium.Can the price of bond B be determined using the PV function or any other function in excel? What is the EAR (effective annual rate) of these two bonds?
- Which of the following measures the interest rate risk of a bond in dollars and cents? O Price Value of a Basis Point O Convexity O Modified Duration Duration.The accrued interest on a bond is calculated by taking the fraction of the coupon period that has passed. True or Falsehe yield that a bond will earn given that it is bought back by the issuer at the earliest possible date is the: Select one: a. current yield b. yield to maturity c. yield to put d. market yield e. yield to call