Change in bond price due to changes in yield to maturity

Assignment Help Financial Management

Reference no: EM132053453

1. An Option contract that can only be exercised on the expiration date is called a (an) __________ option.

a. put

b. call

c. American

d. European

2. A more accurate measure of the change in bond price due to changes in yield to maturity can be found using both modified duration and __________.

a. Macaulay duration

b. time to maturity

c. convexity

d. conversion premium

3. One CBOT corn futures contract trades in units of 5,000 bushels and the minimum initial margin is $2,500 per contract. On July 17, 2013, the Sep '13 CBOT corn futures contract settled at $6.50 per bushel. Calculate the amount of leverage inherent in the futures contract using the minimum initial margin.

a.14

b. 15

c. 13

d. 12

Reference no: EM132053453

Questions Cloud

Find the value of synergy from the merger : Consider the following premerger information about Firm A and Firm T. Find the value of synergy from the merger. Compute the cost of Firm A of each alternative,

Overcome the scope creep situation : Discuss different techniques you can adopt to overcome the "scope creep" situation. Your answer should align with the IEEE 830-1998 standards.

What is an open source programming language : What is an "open source" programming language? Give examples of open source languages.

Verify the schedulability under rate-monotonic algorithm : Verify the schedulability under rate-monotonic algorithm and construct the schedule of the following task set:

Change in bond price due to changes in yield to maturity : A more accurate measure of the change in bond price due to changes in yield to maturity can be found using both modified duration and __________.

Explain what the major risks are : Explain what the major risks are to your organization and how you would use contingency planning to be prepared for such events

Modified duration measures the sensitivity of bond prices : Modified duration measures the sensitivity of bond prices to changes in_______. Macaulay duration is longest for __________.

Technically astute leader in healthcare industry today : What are considered attributes of technically astute leader in healthcare industry today?

The current market price should be closest : Given that a bond matures in 5 years with a coupon of 7% paid semi-annually and a yield to maturity of 9%, the current market price should be closest to _______

User Account

All Pages