SIE: Exercise

Exercise

Answer the following questions.

1. 
   

   1. Order the following yields from highest to lowest for a premium bond: yield to maturity, current yield, nominal yield.

2. 2. Order the following yields from highest to lowest for a discount bond: yield to maturity, current yield, nominal yield, yield to call.
   
   
3. 3. _____ is a measure of a bond’s sensitivity to interest rates.
4. 4. _____ are secured bonds that offer bondholders a first lien on corporate property.
5. 5. _____ are bonds that are secured by financial assets.
6. 6. Debentures [are/are not] secured by a physical asset or collateral.
7. 7. Put the following in order from hig