Estimate the Limit Numerically

question 19

Multiple Choice

Estimate the limit numerically.

Understand the concepts of coupon rate, duration, and their impact on bond investment decisions.

Determine the inflation rate given nominal and real rates of return.

Calculate the duration of bonds and understand its implication on interest rate risk.

Understand the concept of interest rate risk and identify which bonds are more susceptible to it.

---

Definitions:

Rights Offering

An offer to existing shareholders to purchase additional shares at a discount before the shares are offered to the public.