Just need the answers, no need for an explanation for each. These are part of a

Question

Just need the answers, no need for an explanation for each. These are part of a study guide questions for an exam I have been studying for and I want check if my answers are correct

17. In calculating the current yield for a bond: a. the coupon payment is ignored. b. the present value of the capital gain/loss is ignored. e. the present value of the final payment is the only important consideration. d. the present value of the coupon payments is the only important consideration 18. Which of the following would lead to a decrease in bond demand? a. An increase in expected inflation. b. An increase in wealth c. A decrease in risk d. A decrease in liquidity. 19. An increase in expected inflation will cause: a. the bond supply curve to shift to the left. b. the bond demand curve to shift to the right c. the price of bonds to decrease. d. the price of bonds to increase. to bonds, suppose that the returns on other assets fall. In the bond market this will result in: a. a movement down the bond demand curve. b. a shift to the left of the bond demand curve. c. an increase in the price of bonds. d. a shift to the left of the bond supply curve 21. If the risk on bonds issued by the government of France increases relative to the risk U.S. government bonds, the price of U.S. government bonds should: a. not change since U.S. government bonds are free of default risk. b. decrease since people will bail out of all government bonds. c. increase as the demand for these bonds increases. d. not be affected because the two types of bonds are traded in different markets. 22. The U.S. Treasury has introduced bonds where the return is indexed to the consumer these bonds, relative to other index. We should expect that a. lower price and lower return due to the decreased risk. b. lower price and a lower fixed return since the demand for them should be higher c. higher price d. higher price and lower return and higher fixed return since we always seem to have some inflation. inflation in holding these bonds 3. When comparing 3-month and 10-year Treasuries, which of the following is true? a. interest rates of different maturities tend to move together b. yields on short-term bonds are more volatile than yields on long-term bonds. c. lopg-term yields tend to be higher than short-term yields. d. all of the above. he expectations hypothesis implies that when interest rates are expected to rise in the future: a. long-term interest rates will be higher than short-term interest rates. 24. T b. short-term interest rates will be higher than long-term interest rates. c. short-term and long-term interest rates will be the same. d. none of the above. 25. Hedging occurs when investments have: a opposite payoff patterns. b. the same payoff patterns. c. payoffs that are independent of each other d. the same risk premiums

Explanation / Answer

17)c 18) b19) d 20) c 21) d 22)d 23)d 24)B short term interest rate will be higher than long term interest rate. 25)d

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