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What do you change when you calculate the Yield-to-call instead of Yield-to-maturity? ...

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Finance

  1. What do you change when you calculate the Yield-to-call instead of Yield-to-maturity?

    Coupon and maturity

    Future price and maturity

    Current price and coupon

    Current price and future price

  2. What is the relationship between the coupon rate and duration?

    Inverse (when one goes up (down) the other goes down (up))

    Positive (when one goes up (down) the other goes up (down))

    There is no relationship

    It depends on whether the bond is selling for par

  3. What is the relationship between the bond's maturity and duration?

    Inverse (when one goes up (down) the other goes down (up))

    Positive (when one goes up (down) the other goes up (down))

    There is no relationship

    It depends on whether the bonds is selling for par

  4. What is the taxable equivalent yield of a municipal bond with a yield of 4% and the investor's tax rate is 39%?

    6.56%

    10.26%

    2.44%

    1.56%

  5. If you are bullish (think it is going up) on the stock, then you would do which?

    Go short on the stock

    Buy a put on the stock

    Sell a call on the stock

    Buy a call on the stock

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