State why you would agree or disagree with the following statement: As the duration of a zero-coupon bond is equal to its maturity, the price responsiveness of a zero-coupon bond to yield changes is the same regardless of the level of interest rates
What will be an ideal response?
As seen in Exhibit 4-3, the price responsiveness of a zero-coupon bond is different as yields change. Like other bonds, zero-coupon bonds have greater price responsiveness for changes at higher levels of maturity as interest rates change. Like other bonds, zero-coupon bonds also have greater price responsiveness for changes at lower levels of interest rates compared to higher levels of interest rates.
Except for long-maturity deep-discount bonds, bonds with lower coupon rates will have greater modified and Macaulay durations. Also, for a given yield and maturity, zero-coupon bonds have higher convexity and thus greater price responsiveness to changes in yields.
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A. internal diseconomies. B. internal economies. C. benefits. D. externalities.
Which of the following characteristics would make diversity training more effective?
A. It must be separated from the work context. B. It should be tied to business objectives. C. It should not last for more than a day. D. It should emphasize more on learning skills than behaviors. E. It should be unstructured.