Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
2
Transcribed Image Text:Which of the following statements is not
correct?
Select one:
а.
The duration of a consol bond is independent
of coupon rates and face values.
b.
Asset transformation in Financial institutions
may result in a mismatch in asset and liability
maturities.
C.
To measure and hedge interest rate risk,
treasurers should manage the duration gap
rather than the maturity gap.
d.
In duration analysis, we calculate net worth as
the difference between book (accounting)
values of assets and liabilities.
е.
Financial market integration increases the
speed with which interest rate changes and
associated volatility are transmitted among
countries.
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