An amortizing security has more reinvestment risk

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Reference no: EM131825331

1. A $1000 Par, 30-Year 1.4% semiannual coupon bond issued on Sept 21st 1995 is quoted as 98:17 on May 3rd 2008. The Full (dirty) Price is closest to.

a. 986.9103

b. 986.5675

c. 986.9765

d. 986.9484

e. 986.9645

2. An amortizing security has more reinvestment risk and more interest rate risk than a comparable Zero-Coupon bond. This statement is most likely

a. Correct with respect to both reinvestment risk and interest rate risk

b. Incorrect with respect to interest rate risk but correct with respect to reinvestment risk

c. Incorrect with respect to reinvestment risk but correct with respect to interest rate risk

d. Incorrect with respect to both reinvestment risk and interest rate risk

Reference no: EM131825331

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