The Macaulay duration is the: a. The bond's semi-elasticity of the price with respect to the interest rate. b. The bond's price elasticity with respect to the interest rate. c. The bond's change in price with respect to time. d. The bond's change in price with respect to the interest rate

Write down an equation for the three main components of the nominal long term interest rate on a bond, clearly explaining what each symbol stands for.

What happens when a bond's market rate is less than the stated rate?

23. The bond issue price is determined by calculating the a.future value of the stream of interest payments and the future value of the maturity amount. b.present value of the stream of interest payments and the present value of the maturity amount. c.future value of the stream of interest payments and the present value of the maturity amount. d.present value of the stream of interest payments and the future value of the maturity amount.

1. To calculate a gain or loss on redemption of a bond, you compare a. The market interest rate to the contract rate b. The carrying value value of the bond to the proceeds received from the sale of the bond c. The income for the period d. The proceeds to the unamortized premium or discount   2. If the proceeds are greater than the carrying value, you will have a a. gain with a credit balance b. gain with a debit balance c. loss with a debit balance d. loss with a credit balance

The yield to maturity on a bond   a is fixed in the indenture. b is lower for higher-risk bonds. c is the required return on the bond. d is generally equal to the coupon interest rate.

All of the following refer to the face rate of interest on a bond except: a. stated rate b. effective rate c. nominal rate d. coupon rate

In an interest swap contract, the exchange of cash flow calculated in each period is based upon the: a. notional principal. b. present value of notional principal. c. swap principal. d. face value of interest-bearing bond.

Two interest rates are associated with pricing a bond.  Name and describe each.  How are they used ?

What is the price of floating rate bond that is at its reset date?