NO.PZ202209060200004304
问题如下:
Is the footnote Moynahan includes on page 4 most likely correct?选项:
A.Yes. B.No, with respect to bond prices. C.No, with respect to roll down return.解释:
SolutionC is correct. The footnote Moynahan includes on page 4 is incorrect with respect to roll down return. The roll down return is equal to the bond’s percentage price change assuming an unchanged yield curve over the strategy horizon. The roll down return results from the bond “rolling down” the yield curve as the time to maturity decreases. As time passes, a bond’s price typically moves closer to par.
A is incorrect. Moynahan’s footnote regarding the yield curve is not accurate.
B is incorrect. Moynahan’s footnote with respect to bond prices is accurate.
如题