Investments Flashcards
1
Q
Relationship between bond prices and interest rates?
A
Inverse.
2
Q
If yield > coupon rate, is the bond trading at discount, prem or par?
A
Discount.
3
Q
Bond yield is calculated as?
A
(Annual cash flow divided by current market price)*100
4
Q
Yield to maturity?
A
(Int + Price chg per period) *100
_______________________________
(Purchase price + Par value)/2
