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NEW QUESTION: 1
Initially the term structure is flat. Economic factors cause the required return for a cash flow to be received in 10 years to increase by 25 basis points. This change in the term structure:
A. will have the greatest impact on coupon bonds with maturity greater than 10 years.
B. will have the greatest impact on coupon bonds with maturity less than 10 years.
C. will have the greatest impact on coupon bonds with maturity of 10 years.
Answer: C
Explanation:
For a standard coupon bond, the cash flow on the bond's maturity date is the largest one.
This change will cause the return of principal for a 10-year coupon bond to be discounted at the now higher rate.
NEW QUESTION: 2
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C. Bewertungsbereich.
D. Transaktionstyp.
Answer: A,B
NEW QUESTION: 3
A. Option C
B. Option A
C. Option D
D. Option B
Answer: D
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