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...
, 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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