The duration of bond tells us

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1. the M-square measure is:

a. just a number with no units.

b. a percentage that shows excess volatility.

c. a measure of excess return over risk free rate.

d. none of these are true.

2. TDH has a price cash flow ratio of 6.8 and cash flow per share of $13.64. if the cash flow per share is expected to grow at 9.7%, what will be its stock price next year?

a. 126.31

b. 127.51

c. 122.14

d. 101.75

3. the duration of a bond tells us:

a. how long it will take the bondholder to get the face value of the bond.

b. how soon is the corporation going to call the bond.

c. how sensitive is the bond’s price to changes in yield to maturity.

d. none of the above are true.

Reference no: EM131947303

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