CSC 课程辅导(4)

D.    Answer the questions below.

 a)    If a bond has an 8% coupon and current market yields are 10%, what decision would an investor make if he is at a decision point?
-    Retractable?
-    Extendible?
-    Call?

b)    If a bond has an 8% coupon and current market yields are 6%, what decision would an investor make?
-    Retractable?
-    Extendible?
-    Call?

E.    Describe the market performance of the following bonds in the specified situations?
a)    floating rate, if interest rates have increased
b)    callable, if  interest rates have declined
c)    callable, if interest rates have increased
d)    extendible/retractable, if interest rates have increased
e)    extendible/retractable, if interest rates have decreased
f)    convertible, if stock price > conversion price
g)    convertible, if stock price < conversion price
h)    junk bond, if economy is in recession
i)    strip bond, if interest rates have increased

F.    What specific risk factors would each of the following bonds be exposed to?
a)    foreign pay
b)    floating rate
c)    subordinated
d)    convertible
e)    strip bond
f)    junk bond (high yield bond)


G.    Answer the following questions.

a)    If inflation levels are high, which of the following bonds would an investor prefer?
-    floating rate, callable, strip

b)    Which of the following bonds is riskier?
-    debenture, subordinated debenture

c)    Which of the following is riskier?
-    domestic, foreign pay

d)    Which of the following bonds will have the greatest price reaction to an increase in interest rates?
-      callable, retractable, strip

e)    If interest rates decrease, which of the following bonds would have the least price response?
-       floating rate, strip, foreign pay

f)    If an investor had the opportunity and interest rates were increasing, which of the following features would be triggered?
-    retraction, extension, strip
CSC Training Course