Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
All other things being constant,
- duration __________ when maturity decreases.
- duration decreases when the coupon rate __________.
- duration __________ when yield-to-maturity (YTM) decreases.
A.
increase / decreases / decreases
B.
increase / increases / decreases
C.
decreases / decreases / increases
D.
decreases / increases / increases
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- of stion According to MM Case II, if the expected return on assets decreases, what happens to the expected return on equity? Select one: Oa increases O b. remains constant Oc decreases O d. depends on the firm's capital structure Time learrow_forwardof stion According to MM Case II, if the expected return on assets decreases, what happens to the expected return on equity? Select one: Oa increases O b. remains constant Oc decreases O d. depends on the firm's capital structure Time learrow_forward1. An estimation by marginal investor, a higher expected return is earned on A. more risky securities B . less risky securities C. less premium D. high premium Don't use chatgpt otherwise give 10 downvotesarrow_forward
- What is TRUE about the Future Value general growth:I. For a given interest rate: the longer the time period, the higher the future valueII. For a given time period: the higher the interest rate, the larger the future valueIII. The formula for Future Value is FV = r(1 + PV)tIV. The formula for Future Value is FV = PV(1 + r)tV. The formula for Future Value is FV = PV(1 + t)rarrow_forwardAn estimation by marginal investor, a higher expected return is earned on A. more risky securities B. less risky securities C. less premium D. high premium (Don't use chatgpt otherwise give 10 downvotes)arrow_forwardWhich of the following is true about Interest Rate? i. The Fisher Effect illustrates the positive relationship between inflation and nominal interest rates. ii. APR will always be greater than the EAR. iii. We can find the nominal interest rate by adding the default and maturity premiums to the sum of the real rate and inflation. O A. ii and i only O B. i and ii only OC. i only O D. i, ii, and iiiarrow_forward
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