Increases the amount of a bonds interest rate risk

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Reference no: EM131511917

1. Which of the below increases the amount ofa bond’s Interest Rate Risk?

a) A higher coupon rate

b) Shorter maturity

c) Longer maturity

d) Being a registered bond rather than a bearer bon

2. There are generally two categories of bond ratings. These are called:

a) Junk Bonds and High Yield bonds

b) Safe bonds and Risky bonds

c) Speculative grade bonds and Junk bonds

d) Investment grade bonds and speculative grade bonds

3. An annuitypayment related to a loan will always be a(n) ______. An annuity payment for rent on an apartment will most likely be a(n) ________.

a) annuity due / ordinary annuity

b) ordinary annuity / ordinary annuity

c) ordinary annuity / annuity due

d) annuity due / annuity due

Reference no: EM131511917

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