which of the below has a negative correlation with the return on bonds ? a. Taxability b. Default risk c. Callable bonds d. Liquidity e. Debenture
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which of the below has a negative correlation with the return on bonds ?
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- What is the cost of equity based on the own-bondyield-plus-judgmental-risk-premium method?Among the factors considered in the quantitative models of default risk: a. Business cycle b. Reputation c. Collateral d. Leverage( ) is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates. a.Convexity b.Maturity c.Duration d.Immunization
- Default risk on bonds can be evaluated by using:A. financial analysisB. bond ratingsC. estimates of potential losses on bondsD. a and bWhat is the mispricing if an Equity Premium exists? Should more bonds or more equity be added to a portfolio? Please provide references.The relationship between bond prices and the interest rate bonds pay: Seleccione una: a. is Positive O b. depends on stock prices c. is unrelated d. is inverse or negative
- 2. Term structure premium, an inflation of bond and bond default premium are included in A. risk factors B. premium factors C. bond buying factors D. multi modelDescribe each of the following methods for estimating the cost of equity: (a) the CAPM, (b) DCF,and (c) the bond-yield-plus-risk-premium.Where can you obtain inputs for each of thesemethods, and how accurate are estimates basedon each procedure? Can you state categoricallythat one method is better than the others, or doesthe “best” method depend on the circumstances?What is the main reason for the yield differences between treasury bond yield and corporate bond yield? a. Credit risk b. Systemic Risk c. Liquidity risk d. Interest rate risk
- ) is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates. O Convexity Maturity Duration Immunization. Distinguish between the following values relative to bonds payable: a. Maturity value. b. Face value. c. Market (fair) value. d. Par value.Which of the following is NOT a defining quality of a standard bond cash flow? a) Coupon b) Maturity c) Perpetuity Cash Flow d) Face Value
