C2-thị trường định chế

1. 1. The yield to maturity is always equal to the simple interest rate on a simple loan.

• True

• False

2. 2. A bond with a higher default risk will always have a lower yield to maturity than a default-free bond of the same maturity.

• True

• False

3. 3. According to the expectations theory, the interest rate on a long-term bond is equal to the average of current and expected future short-term interest rates.

• True

• False

4. 4. Municipal bonds usually have higher yields than U.S. Treasury bonds due to their lower liquidity and default risk.

• True

• False

5. 5. The Fisher equation states that the nominal interest rate is equal to the real interest rate plus expected inflation.

• True

• False

6. 6. Which of the following best describes the concept of present value?

• The value of money increases over time due to inflation.

• A dollar received in the future is worth more than a dollar today.

• The value of future cash flows discounted to the present at a given interest rate.

• The total amount of interest earned over time.

7. 7. What happens to bond prices when interest rates rise?

• Bond prices increase.

• Bond prices decrease.

• Bond prices remain unchanged.

• It depends on the bond’s maturity.

8. 8. Which type of bond does NOT make periodic interest payments?

• Coupon bond

• Discount bond

• Fixed-payment loan

• Convertible bond

9. 9. What is the primary reason yield curves are usually upward-sloping?

• The expectations theory

• The liquidity premium theory

• The market segmentation theory

• The risk structure of interest rates

10. 10. What happens when the default risk on a corporate bond increases?

• The bond’s interest rate decreases.

• The demand for the bond increases.

• The bond’s price falls, and its yield rises.

• The bond becomes more attractive to risk-averse investors.