Describes why a bond manager would use leverage

Assignment Help Financial Management
Reference no: EM131504307

1. Which of the following best describes why a bond manager would use leverage:

A. To increase credit risk

B. To increase duration

C. To increase collateral

D. To increase return

2. Which of the following factors would an international bond portfolio manager be least concerned with:

A. Currency risk

B. Credit risk

C. Duration management

D. Interest rate risk

Reference no: EM131504307

Questions Cloud

Describe reason for bond to receive credit rating upgrade : what will the account balance be after 4 years? Which of the following events would best describe the reason for a bond to receive a credit rating upgrade:
What is the total return in dollars : What is the total return in dollars you earned on the bond investment over the 2-year holding period from coupons and price change?
Immunization requires offsetting : Credit scoring is typically used to assess credit risk for which of the following. Immunization requires offsetting.
Market-neutral trading strategy and bonds recovery rate : A ‘market-neutral’ trading strategy is one that. Which of the following best describes a bonds recovery rate:
Describes why a bond manager would use leverage : Which of the following best describes why a bond manager would use leverage:
Relative to actual bonds-bond futures offer the advantage : Relative to actual bonds, bond futures offer the advantage of:
Manufacture new line of video games consoles : Medela's Entertainement Systems is setting up to manufacture a new line of video games consoles
What is the purpose of risk capital : What is the purpose of risk capital?
How much can you sell the bond : Suppose you buy a bond on January 1st, 2012. how much can you sell the bond on January 1st, 2014?

Reviews

Write a Review

Financial Management Questions & Answers

  What are the main aspects of accounting standard

Calculate the net cash flow from financing activities based and discuss in brief the treatment of following items in Cash Flow Statement - Calculate the net cash flow from financing activities

  The expected long-run growth rate for stock

A share of Lash Inc.'s common stock just paid a dividend of $20.00. If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 8%, what is the stock price? Round to two decimal points.

  What is the standard deviation of the stocks returns

You find a certain stock that had returns of 15 percent, −22 percent, 23 percent, and 10 percent for four of the last five years. The average return of the stock over this period was 9.5 percent. What was the stock’s return for the missing year? What..

  Firm does not pay dividend-compute the value of stock

A firm does not pay a dividend. It is expected to pay its first dividend of $0.18 per share in three years. This dividend will grow at 12 percent indefinitely. Use a 13 percent discount rate. Compute the value of this stock.

  Internal rate of return equals the required return

Which one of the following will occur when the internal rate of return equals the required return? Explain why?

  What is the company cost of equity

The Absolute Zero Co. just issued a dividend of $3.35 per share on its common stock. The company is expected to maintain a constant 6.9 percent growth rate in its dividends indefinitely. If the stock sells for $67 a share, what is the company’s cost ..

  Salary increases at an average annual rate

Upon graduating from college, you make an annual salary of $31,546. You set a goal to double it in the future. If your salary increases at an average annual rate of 6.48 percent, how long will it take you to reach your goal?

  What is robin corporation taxable income

Robin Corporation has ordinary income from operations of $35,000; net long-term capital gain of $12,000; and net short-term capital loss of $30,000. What is Robin Corporation’s taxable income for 2016?

  What is the cost of existing and new preferred stock

Toto and Associates' preferred stock is selling for $27.50 per share. The firm nets $25.60 after issuance costs. The stock pays an annual dividend of $3.00 per share. What is the cost of existing, and new, preferred stock respectively? Can you please..

  What if the bond matures in one year

If the bond matures in 20 years, compute its current price. What if the bond matures in 1 year?

  Corporate bond has a coupon rate

A corporate bond has a coupon rate of 5.5% and a yield to maturity of 4.905%. You buy the bond when it is quoted at 102.10 percent of par. It has been 75 days since the last coupon payment was made. How much must you pay, per bond?

  What can a bank do to increase its core deposits

What can a bank do to increase its core deposits? What are the costs and benefits of such efforts? Generally, how might management estimate the relative interest elasticity of various deposit liabilities of a bank?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd