For a high-quality debt issuer with a large amount of publicly traded debt, bond investors tend to devote most effort to assessing the issuer’s: A default risk. B loss severity. C market liquidity risk.

An investor buys a three-year bond with a 5% coupon rate paid annually. The bond, with a yield-to-maturity of 3%, is purchased at a price of 105.657223 per 100 of par value. Assuming a 5-basis point change in yield-to-maturity, the

Which of the following statements relating to yield volatility is most accurate? If the term structure of yield volatility is downward sloping, then: A short-term rates are higher than long-term rates. B long-term yields are more stable than short-term yields.

The bond equivalent yield of a 180-day banker’s acceptance quoted at a discount rate of 4.25% for a 360-day year is closest to: A 4.31%. B 4.34%. C 4.40%