投资学第7版TestBank答案15Word文档下载推荐.docx
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2.Theyieldcurveshowsatanypointintime:
A)Therelationshipbetweentheyieldonabondandthedurationofthebond.
B)Therelationshipbetweenthecouponrateonabondandtimetomaturityofthebond.
C)Therelationshipbetweenyieldonabondandthetimetomaturityonthebond.
CDifficulty:
3.Aninvertedyieldcurveimpliesthat:
A)Long-terminterestratesarelowerthanshort-terminterestrates.
B)Long-terminterestratesarehigherthanshort-terminterestrates.
C)Long-terminterestratesarethesameasshort-terminterestrates.
D)Intermediateterminterestratesarehigherthaneithershort-orlong-terminterestrates.
E)noneoftheabove.
ADifficulty:
Theinverted,ordownwardsloping,yieldcurveisoneinwhichshort-termratesarehigherthanlong-termrates.Theinvertedyieldcurvehasbeenobservedfrequently,althoughnotasfrequentlyastheupwardsloping,ornormal,yieldcurve.
4.Anupwardslopingyieldcurveisa(n)_______yieldcurve.
A)normal.
B)humped.
C)inverted.
D)flat.
Theupwardslopingyieldcurveisreferredtoasthenormalyieldcurve,probablybecause,historically,theupwardslopingyieldcurveistheshapethathasbeenobservedmostfrequently.
5.Accordingtotheexpectationshypothesis,anormalyieldcurveimpliesthat
A)interestratesareexpectedtoremainstableinthefuture.
B)interestratesareexpectedtodeclineinthefuture.
C)interestratesareexpectedtoincreaseinthefuture.
D)interestratesareexpectedtodeclinefirst,thenincrease.
E)interestratesareexpectedtoincreasefirst,thendecrease.
Anupwardslopingyieldcurveisbasedontheexpectationthatshort-terminterestrateswillincrease.
6.Whichofthefollowingisnotproposedasanexplanationforthetermstructureofinterestrates?
A)Theexpectationstheory.
B)Theliquiditypreferencetheory.
C)Themarketsegmentationtheory.
D)Modernportfoliotheory.
E)A,B,andC.
DDifficulty:
A,B,andCarealltheoriesthathavebeenproposedtoexplainthetermstructure.
7.Theexpectationstheoryofthetermstructureofinterestratesstatesthat
A)forwardratesaredeterminedbyinvestors'
expectationsoffutureinterestrates.
B)forwardratesexceedtheexpectedfutureinterestrates.
C)yieldsonlong-andshort-maturitybondsaredeterminedbythesupplyanddemandforthesecurities.
D)alloftheabove.
Theforwardrateequalsthemarketconsensusexpectationoffutureshortinterestrates.
8.Whichofthefollowingtheoriesstatethattheshapeoftheyieldcurveisessentiallydeterminedbythesupplyanddemandsforlong-andshort-maturitybonds?
A)Liquiditypreferencetheory.
B)Expectationstheory.
C)Marketsegmentationtheory.
Marketsegmentationtheorystatesthatthemarketsfordifferentmaturitiesareseparatemarkets,andthatinterestratesatthedifferentmaturitiesaredeterminedbytheintersectionoftherespectivesupplyanddemandcurves.
9.Accordingtothe"
liquiditypreference"
theoryofthetermstructureofinterestrates,theyieldcurveusuallyshouldbe:
A)inverted.
B)normal.
C)upwardsloping
D)AandB.
E)BandC.
EDifficulty:
Accordingtotheliquiditypreferencetheory,investorswouldprefertobeliquidratherthanilliquid.Inordertoacceptamoreilliquidinvestment,investorsrequirealiquiditypremiumandthenormal,orupwardsloping,yieldcurveresults.
Usethefollowingtoanswerquestions10-13:
Supposethatallinvestorsexpectthatinterestratesforthe4yearswillbeasfollows:
10.Whatisthepriceof3-yearzerocouponbondwithaparvalueof$1,000?
A)$863.83
B)$816.58
C)$772.18
D)$765.55
E)noneoftheabove
Moderate
$1,000/(1.05)(1.07)(1.09)=$816.58
11.Ifyouhavejustpurchaseda4-yearzerocouponbond,whatwouldbetheexpectedrateofreturnonyourinvestmentinthefirstyeariftheimpliedforwardratesstaythesame?
(Parvalueofthebond=$1,000)
A)5%
B)7%
C)9%
D)10%
Theforwardinterestrategivenforthefirstyearoftheinvestmentisgivenas5%(seetableabove).
12.Whatisthepriceofa2-yearmaturitybondwitha10%couponratepaidannually?
(Parvalue=$1,000)
A)$1,092
B)$1,054
C)$1,000
D)$1,073
[(1.05)(1.07)]1/2-1=6%;
FV=1000,n=2,PMT=100,i=6,PV=$1,073.34
13.Whatistheyieldtomaturityofa3-yearzerocouponbond?
A)7.00%
B)9.00%
C)6.99%
D)7.49%
[(1.05)(1.07)(1.09)]1/3-1=6.99.
Usethefollowingtoanswerquestions14-16:
Thefollowingisalistofpricesforzerocouponbondswithdifferentmaturitiesandparvalueof$1,000.
14.Whatis,accordingtotheexpectationstheory,theexpectedforwardrateinthethirdyear?
B)7.33%
C)9.00%
D)11.19%
881.68/808.88-1=9%
15.Whatistheyieldtomaturityona3-yearzerocouponbond?
A)6.37%
C)7.33%
D)10.00%
(1000/808.81)1/3-1=7.33%
16.Whatisthepriceofa4-yearmaturitybondwitha12%couponratepaidannually?
A)$742.09
B)$1,222.09
C)$1,000.00
D)$1,141.92
Difficult
(1000/742.09)1/4-1=7.74%;
FV=1000,PMT=120,n=4,i=7.74,PV=$1,141.92
17.Themarketsegmentationtheoryofthetermstructureofinterestrates
A)theoreticallycanexplainallshapesofyieldcurves.
B)definitelyholdsinthe"
realworld"
.
C)assumesthatmarketsfordifferentmaturitiesareseparatemarkets.
E)AandC.
Althoughthistheoryisquitetidytheoretically,bothinvestorsandborrowswilldepartfromtheir"
preferredmaturityhabitats"
ifyieldsonalternativematuritiesareattractiveenough.
18.Anupwardslopingyieldcurve
A)maybeanindicationthatinterestratesareexpectedtoincrease.
B)mayincorporatealiquiditypremium.
C)mayreflecttheconfoundingoftheliquiditypremiumwithinterestrateexpectations.
Oneoftheproblemsofthemostcommonlyusedexplanationoftermstructure,theexpectationshypothesis,isthatitisdifficulttoseparateouttheliquiditypremiumfrominterestrateexpectations.
19.The"
break-even"
interestrateforyearnthatequatesthereturnonann-periodzero-couponbondtothatofann-1-periodzero-couponbondrolledoverintoaone-yearbondinyearnisdefinedas
A)theforwardrate.
B)theshortrate.
C)theyieldtomaturity.
D)thediscountrate.
Theforwardrateforyearn,fn,isthe"
interestrateforyearnthatequatesthereturnonann-periodzero-couponbondtothatofann-1-periodzero-couponbondrolledoverintoaone-yearbondinyearn.
20.Whencomputingyieldtomaturity,theimplicitreinvestmentassumptionisthattheinterestpaymentsarereinvestedatthe:
A)Couponrate.
B)Currentyield.
C)Yieldtomaturityatthetimeoftheinvestment.
D)Prevailingyieldtomaturityatthetimeinterestpaymentsarereceived.
E)Theaverageyieldtomaturitythroughouttheinvestmentperiod.
Inordertoearntheyieldtomaturityquotedatthetimeoftheinvestment,couponsmustbereinvestedatthatrate.
21.Whichoneofthefollowingstatementsistrue?
A)Theexpectationshypothesisindicatesaflatyieldcurveifanticipatedfutureshort-termratesexceedthecurrentshort-termrate.
B)Thebasicconclusionoftheexpectationshypothesisisthatthelong-termrateisequaltotheanticipatedlong-termrate.
C)Theliquiditypreferencehypothesisindicatesthat,allotherthingsbeingequal,longermaturitieswillhaveloweryields.
D)Thesegmentationhypothesiscontendsthatborrowsandlendersareconstrainedtoparticularsegmentsoftheyieldcurve.
Aflatyieldcurveindicatesexpectationsofexistingrates.Expectationshypothesisstatesthattheforwardrateequalsthemarketconsensusofexpectationsoffutureshortinterestrates.ThereverseofCistrue.
22.Theconceptsofspotandforwardratesaremostcloselyassociate