债券久期问题Which of the following would always shorten a non-call

萧刃11112022-10-04 11:39:541条回答

债券久期问题
Which of the following would always shorten a non-callable bond's duration?
a. Upgrade in credit rating
b. Twist in the yield curve
c. Downgrade in credit rating
d. A merger with another firm

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wadaxiadi 共回答了23个问题 | 采纳率91.3%
A would be the right choice.
When a bond is upgraded, its required rate of return goes down. That is, it is less sensitive to market rate changes. Indeed, less sensitive to rate change itself means shortened duration. Remember that the longer the duration, the more sensitive it is to market rate change.
FYI.
1年前

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