All bonds that will not be held to maturity have interest rate risk which occurs because of the change in the price of the bond as a result of
A) interest-rate changes.
B) changes in the coupon rate.
C) default of the borrower.
D) changes in the asset's maturity date.
A
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In the United States, most workers now
A. work for some level of government. B. work in the manufacturing sector. C. work in the agricultural sector. D. work in the service sector.
Which of the following will cause the largest reduction in the birthrate?
(a) the population becomes less religious (b) public healthcare improves (c) education becomes more available (d) an increase in the opportunity cost of a woman's time
If a Mexican pension fund decides to purchase U.S. government bonds, what is the effect in the foreign exchange market?
a. It will increase demand for U.S. dollars. b. It will decrease demand for U.S. dollars. c. It will increase supply of U.S. dollars. d. It will decrease supply of U.S. dollars.
Pure rent is the return to any factor of production that is in fixed supply.
Answer the following statement true (T) or false (F)