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INV3702 Oct Nov 2022 Exam Questions R85,00   Add to cart

Exam (elaborations)

INV3702 Oct Nov 2022 Exam Questions

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This is the question paper for Oct Nov 2022 exam for INV3702. I struggled to get exams that was written in recent years hence I saved all the questions to assist other students as the exams are written on an online platform. These questions does not include answers and will be helpful to revise s...

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  • May 1, 2023
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  • 2022/2023
  • Exam (elaborations)
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INV3702 OCT/NOV 2022 EXAM




ELIANA BOTES
[COMPANY NAME] [Company address]

, An analyst has noticed lately that the price of a particular bond has risen less when the yield
falls by 0.1% than the price falls when rates increase by 0.1%. She could conclude that the
bond:

a.
will be downgraded by credit-rating agencies.

b.
has negative convexity.

c.
has an embedded put option.

d.
is an option-free bond.



The full price of a bond:

a.
includes accrued interest.

b.
cannot be calculated between coupon payment dates.

c.
includes trading costs.

d.
is also known as the “clean” price.

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