Independence Day Deal! Unlock 25% OFF Today – Limited-Time Offer - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location PL
Mob_nav_barsMENU

American Bankers Association Exam CTFA Topic 1 Question 69 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 69
Topic #: 1
[All CTFA Questions]

The sensitivity of coupon price to change in its yield:

Show Suggested Answer Hide Answer
Suggested Answer: B

by Carin at Jul 03, 2024, 11:00 PM

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Sheron
2 months ago
Ah, the age-old question of bond price sensitivity. It's all about the derivative, my friends. Just differentiate the bond price with respect to the yield and there's your answer. Simple as pi.
upvoted 0 times
Xuan
17 days ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Odelia
24 days ago
B) Is inversely related to the bond's yield to maturity
upvoted 0 times
...
Brigette
25 days ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Susy
29 days ago
B) Is inversely related to the bond's yield to maturity
upvoted 0 times
...
Maddie
1 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
Edelmira
1 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
...
Alona
2 months ago
Wait, we're talking about coupons? I thought this was a test on how to maximize my snack budget. Where's the multiple-choice question on whether Doritos or Cheetos are the superior chip?
upvoted 0 times
...
Shawna
2 months ago
D can't be right, can it? The sensitivity has to depend on whether the yield is going up or down. Unless the bond market is just a giant game of Calvinball, that is.
upvoted 0 times
Doretha
29 days ago
D can't be right, can it? The sensitivity has to depend on whether the yield is going up or down.
upvoted 0 times
...
Brice
1 months ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Jerry
2 months ago
B) Is inversely related to the bond's yield to maturity
upvoted 0 times
...
Na
2 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
...
Kimbery
2 months ago
C seems like the correct answer to me. The sensitivity is greater for increases in yield to maturity than for decreases. It's like the bond market is more sensitive to bad news than good news. Go figure!
upvoted 0 times
Magnolia
1 months ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Lawrence
2 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
...
Almeta
2 months ago
I think the sensitivity is greater for increases in yield to maturity than for decreases.
upvoted 0 times
...
Glenn
2 months ago
Hmm, I'm not sure about this one. I'll have to think it through a bit more. Maybe I should have studied bond pricing formulas a little harder.
upvoted 0 times
...
Golda
2 months ago
I think the answer is B. The sensitivity of the coupon price is inversely related to the bond's yield to maturity. This makes sense because as the yield increases, the price of the bond decreases.
upvoted 0 times
Cathrine
14 days ago
D) Is constant regardless of whether the yield to maturity increases or decreases
upvoted 0 times
...
Jeff
16 days ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Ronny
18 days ago
B) Is inversely related to the bond's yield to maturity
upvoted 0 times
...
Pearlene
1 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
...
Salome
2 months ago
I disagree, I believe it is inversely related to the bond's yield to maturity.
upvoted 0 times
...
Yuonne
2 months ago
I think the sensitivity of coupon price is directly related to the bond's yield.
upvoted 0 times
...

Save Cancel
az-700  pass4success  az-104  200-301  200-201  cissp  350-401  350-201  350-501  350-601  350-801  350-901  az-720  az-305  pl-300  

Warning: Cannot modify header information - headers already sent by (output started at /pass.php:70) in /pass.php on line 77