Volatility of a Bond Is Given By

question 13

Multiple Choice

Volatility of a bond is given by:
I. Duration/ (1 + yield)
II. Slope of the curve relating the bond price to the interest rate
III. Yield to maturity

• A) I only
• B) II only
• C) III only
• D) I and II only

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Definitions:

Net Income

Net Income is the total profit of a company after all expenses and taxes have been deducted from revenue.

Variable Costs

Costs that vary in proportion to the level of production or business activity.

Fixed Costs

Expenses that do not change with the amount of goods or services produced over a short period.

Variable Costs

Costs that vary directly with the level of production or service provision.