Author Question: A government bond has a 9% annual coupon and a 10% yield to maturity. Which statement regarding this ... (Read 95 times)

ddddddddddeeee4444 · **on:** Aug 7, 2023

Question 1

A downward-sloping yield curve is often referred to as which of the following?

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pure expectation curve

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flat curve

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normal curve

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inverted curve

Question 2

A government bond has a 9% annual coupon and a 10% yield to maturity. Which statement regarding this bond is correct?

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The bond sells at a price above par.

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The bond has a current yield greater than 9%.

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The bond’s required rate of return islessthan 10%.

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If the yield to maturity remains constant, the price of the bond will decrease over time.

zubair1583 · **Reply #1 on:** Aug 7, 2023

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