FIN 560 Week 5 Homework ES
1. (TCO C) A collateral trust bond is _____.
2. (TCO C) Floating rate bonds have a _____ that is adjusted with current market interest rates.
3. (TCO C) A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in 16 years, it should sell for a price of _____ today.
4. (TCO C) Bond portfolio immunization techniques balance _____ and _____ risk.
5. (TCO C) A perpetuity pays $100 each and every year forever. The duration of this perpetuity will be _____ if its yield is 9%.