A. Riskier finance
B. Behavioral finance
C. Premium finance
D. Buying finance
A. Customer’s acceptance
B. Banker’s acceptance
C. Federal acceptance
D. Treasury acceptance
Between the two identical bonds having different maturity periods, the price of the ______ bond will change less than that of ______ bond.
A. long-term; short-term
B. short-term; long-term
C. lower-coupon; higher-coupon
D. None of the given options
The longer the time to maturity, all else being equal, increases duration. Higher duration = higher sensitivity to interest rate changes.
Interest rates higher = price lower.
A. abnormal costs
B. normal cash flows
C. abnormal cash flow
D. normal costs
The effect of purchasing power or inflation on present value is important because _________?
A. It increases the real value of cash flows received in the future
B. It reduces the real value of cash flows received in the future
C. It has no effect on real value of cash flow received in the future
D. None of these