Products & Risks第 45 / 125 题
A zero-coupon bond is purchased at a deep discount and:
a.Pays no periodic interest, returning full par value at maturity
b.Pays a floating coupon tied to inflation
c.Pays interest monthly until maturity
d.Is always issued by municipalities only
解析
A zero-coupon bond makes no periodic interest payments; the investor's return is the difference between the discounted purchase price and the par value received at maturity. Because there are no coupons to reinvest, zeros avoid reinvestment risk but are highly sensitive to interest rate changes.
免费刷完整 125 道题库 — 无需注册。
同考点相关题目
- Systematic risk refers to:
- Reinvestment risk is most significant for an investor who:
- Credit (default) risk on a corporate bond is best assessed by reviewing:
- Which of the following bonds is generally most sensitive to a given change in interest rates?
- A mortgage-backed pass-through security, such as a GNMA (Ginnie Mae) certificate, passes through to investors:
- Prepayment risk in mortgage-backed securities means that: