"Fixed Income":Yield of bonds

来源: 正保会计网校编辑：小鞠橘桔 2020/12/10 17:18:39　字体：大小

学习是一个不断积累的过程，每天学习一点，每天进步一点！为了帮助大家更高效地备考2021年CFA考试，正保会计网校每日为大家上新CFA习题供大家练习。让网校与您一起高效备考2021年CFA考试，梦想成真！

Questions 1:

A bond has a 10-year maturity, a $1,000 face value, and a 7% coupon rate. If the market requires a yield of 8% on similar bonds, it will most likely trade at a:

A 、discount.

B 、premium.

C 、discount or premium, depending on its duration.

Questions 2:

Holding all other characteristics the same, the bond exposed to the greatest level of reinvestment risk is most likely the one selling at:

A 、a premium.

B 、a discount.

C 、par.

View answer resolution

【Answer to question 1】A

【analysis】

A is correct. When the required yield is higher than the coupon rate, the bond will trade at a discount to par.

B is incorrect because a bond trades at a premium when the required yield is less than the coupon rate.

C is incorrect because a bond trades at a discount when the required yield is higher than the coupon rate.

【Answer to question 2】A

【analysis】

A is correct. A bond selling at a premium has a higher coupon rate and, all else being equal, bonds with higher coupon rates face higher reinvestment risk. The higher the coupon rate, the more dependent the bond’s total dollar return will be on the reinvestment of the coupon payments in order to produce the yield to maturity at the time of purchase.

B is incorrect because, all else being equal, a bond selling at a discount has a lower coupon rate than a bond selling at a premium.

C is incorrect because, all else being equal, a bond selling at par has a lower coupon rate than a bond selling at a premium.

成功=时间+方法，自制力是这个等式的保障。世上无天才，高手都是来自刻苦的练习。而人们经常只看到“牛人”闪耀的成绩，其成绩背后无比寂寞的勤奋。小编相信，每天都在勤奋练习，即使是一点点的进步，大家一定可以成为人人称赞的“牛人”。

点击了解更多CFA考试资讯>>

上一篇："Fixed Income":callable bond

下一篇："Fixed Income":Bond price