(TCO B) Duration is

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FIN 564 Management of Financial Institutions Week 2 Quiz Answers

 

  1. (TCO B) Duration is
  2. (TCO B) A 10-year maturity coupon bond has a 6-year duration. An equivalent 20-year bond with the same coupon has a duration _____.
  3. (TCO B) A corporate bond returns 12% of its cost (in PV terms) in the first year, 11% in the second year, 10% in the third year and the remainder in the fourth year. What is the bond's duration in years?
  4. (TCO B) The Federal Reserve System is charged with
  5. (TCO B) A decrease in reserve requirements could lead to a(n)