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Chapter 3: Debt Securities

Essentials Of Investments
Pages: 291 - 370
Essentials Of Investments

Essentials Of Investments

Book edition 9th
Author(s) Zvi Bodie, Alex Kane, Alan Marcus, Alan J. Marcus
Pages 748 pages
ISBN 9780078034695

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91 Questions for Chapter 3: Debt Securities

  1. An investor believes that a bond may temporarily increase in credit risk. Which of the following would be the most liquid method of exploiting this?

    Found on Page 329
  2. Which of the following most accurately describes the behavior of credit default swaps?

    Found on Page 329
  3. You buy an eight-year bond that has a 6% current yield and a 6% coupon (paid annually). In one year, promised yields to maturity have risen to 7%. What is your holding-period return?

    Found on Page 329
  4. The stated yield to maturity and realized compound yield to maturity of a (default-free) zero-coupon bond will always be equal. Why?

    Found on Page 329
  5. Which security has a higher effective annual interest rate?

    Found on Page 329
  6. Treasury bonds paying an 8% coupon rate with semi-annual payments currently sell at par value. What coupon rate would they have to pay in order to sell at par if they paid their coupons annually?

    Found on Page 329
  7. A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is:

    Found on Page 329
  8. Return to Table 10.1 and calculate both the real and nominal rates of return on the TIPS bond in the second and third years.

    Found on Page 330
  9. Define the following types of bonds:

    Found on Page 328
  10. The following multiple-choice problems are based on questions that appeared in past CFA examinations.

    Found on Page 333

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