16-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter16TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.Thedurationofabondisafunctionofthebond'sA.couponrate.B.yieldtomaturity.C.timetomaturity.D.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.2.Ceterisparibus,thedurationofabondispositivelycorrelatedwiththebond'sA.timetomaturity.B.couponrate.C.yieldtomaturity.D.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.3.Ceterisparibus,thedurationofabondisnegativelycorrelatedwiththebond'sA.timetomaturity.B.couponrate.C.yieldtomaturity.D.couponrateandyieldtomaturity.E.Noneoftheoptionsarecorrect.4.Holdingotherfactorsconstant,theinterest-rateriskofacouponbondishigherwhenthebond'sA.termtomaturityislower.B.couponrateishigher.C.yieldtomaturityislower.D.currentyieldishigher.E.Noneoftheoptionsarecorrect.5.Holdingotherfactorsconstant,theinterest-rateriskofacouponbondishigherwhenthebond'sA.termtomaturityishigher.B.couponrateishigher.C.yieldtomaturityishigher.D.Alloftheoptionsarecorrect.E.Noneoftheoptionsarecorrect.6.Holdingotherfactorsconstant,theinterest-rateriskofacouponbondishigherwhenthebond'sA.termtomaturityislower.B.couponrateislower.C.yieldtomaturityishigher.D.termtomaturityislowerandyieldtomaturityishigher.E.Noneoftheoptionsarecorrect.7.Holdingotherfactorsconstant,theinterest-rateriskofacouponbondislowerwhenthebond'sA.termtomaturityislower.B.couponrateishigher.C.yieldtomaturityislower.D.termtomaturityislowerandcouponrateishigher.E.Alloftheoptionsarecorrect.8.Holdingotherfactorsconstant,theinterest-rateriskofacouponbondislowerwhenthebond's16-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.A.termtomaturityislower.sB.couponrateishigher.C.yieldtomaturityishigher.D.termtomaturityislowerandcouponrateishigher.E.Alloftheopt...
