Question 1
An 18-year corporate bond was issued 11 years ago. What is it today?
◦
a medium-term bond with 7 years to maturity
◦
a medium-term bond with 18 years to maturity
◦
a long-term bond with 7 years to maturity
◦
a long-term bond with 18 years to maturity
Question 2
An investor has two bonds in their investment portfolio. Bond A matures in 8 years and Bond B matures in 20 years. All else equal, which bond would have a greater price sensitivity to a given change in interest rates?
◦
Bond A would have a greater sensitivity to a given change in interest rates due to its relative shorter term to maturity.
◦
Bond A and Bond B would have the same price sensitivity since term to maturity would not affect bond price.
◦
Bond B would have a greater sensitivity to a given change in interest rates as it has a longer term to maturity.
◦
Bond A and Bond B would have no price sensitivity since a given change in interest rates would not affect bond price.
A double bond between two oxygen atoms
Disulfide bonds are yellow; the three chains are colored
Hydrogen-bond donors and acceptors in water
Effect of Increasing the Investment Rate on the Steady State
Remaining health-adjusted life expectancy (years) at age 25
Important Bonds in Biological Molecules