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Question
Duration represents the weighted average life of a bond where the weights are based on the:A.future value of the individual cash flows relative to the present value of the total cash flows.
B.present value of the individual cash flows relative to the future value of the individual cash flows.
C.present value of the individual cash flows relative to the present value of the total individual cash flows.
D.future value of the individual cash flows relative to the future value of the individual cash flows.
Answer
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Related questions
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The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are:
A.large company stocks and U.S. treasury bills.
B.large company stocks and long-term government bonds.
C.small company stocks and U.S. treasury bills.
D.small company stocks and preferred stock.
E.U.S. treasury bills and small company stocks.
Q:
The difference between the cash market and the futures market is:
A.that commodity prices cannot be negotiated in the futures market, while they can be in the cash market.
B.that larger margins are used in the cash market.
C.that in the cash market, there must be a transfer of the physical possession of the goods.
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B.Chicago Board of Trade.
C.International Money Market of the CME.
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Assume you have purchased a contract for 25,000 British pounds for $35,000. Your margin requirement is $2,000. If the value of a pound increases .01, what is your percentage profit?
A.10.0%
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In order to be listed on an exchange, a firm must meet minimum standards pertaining to the following criteria:
A.the number of common shares publicly held.
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Q:
The Securities Investor Protection Corporation (SIPC) was established to:
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Q:
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Q:
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A.Trading takes place by telephone or electronic network
B.It is regulated by the Securities and Exchange Commission and the National Association of Securities Dealers
C.Government securities of the U.S. Treasury provide the largest dollar volume.
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Q:
An employee of an investment house who executes orders on the floor of the exchange for customers of the firm is called a:
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B.registered trader.
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Q:
From the investment banker's point of view, the major reason syndicates are formed in the distribution of large issues is for the purpose of:
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Q:
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Q:
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Q:
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The value of a bond at any given time is the sum of:
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Q:
Inflationary expectations have no effect on bond prices.
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The approximate yield to maturity method tends to understate the true yield for bonds trading at a discount.
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Q:
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Q:
What would be the current yield of a 6% coupon bond priced at $950?
Q:
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Q:
The impact of interest rate changes on bond prices can be magnified by:
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The market segmentation theory focuses on:
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Q:
Assume a $1,000 Treasury bill is quoted to pay 10% and matures in 3 months.a) How much interest would an investor receive?b) What will be the price of the Treasury bill?c) What will be the true rate of return?