Session-7

Quiz

You have completed your quiz attempt. You have scored 10 point(s).

Question Results
Score 1.00 of 1

1. Reinvestment Risk is associated with

Bonds

Stocks
Floating Rate Loans
Gold
Score 1.00 of 1

2. Interest Rate Risk is associated with

Bonds

Stocks
Floating Rate Loans
Gold
Score 1.00 of 1

3. Duration for a zero coupon bond with a face value of Rs. 1000 and a maturity of 5-
years is sold in the market at a yield to maturity of 10%, is _____________.

3.56 years
3.40 years

4.00 years

3.00 years
Score 1.00 of 1

4. As term to maturity increases, value of bond becomes more sensitive to movements in

______ ?
 Coupon Rate

Market Interest Rate

Price of Bond
Yield
Score 1.00 of 1

5. Higher Duration means

Higher volatility

Lower Volatility
Flat Volatility
No Volatility
Score 1.00 of 1

6. Bond’s price is linked _______ with interest rates.

Inversely

Non linearly
Linearly
Positively
Score 1.00 of 1

7. Duration of a Bond is

Either lower or Equal to its maturity

Only lower to its maturity

Only higher to its maturity
Has no relation
Score 1.00 of 1

8. Price Risk is associated with

Bonds

Stocks
 Floating Rate Loans
Gold
Score 1.00 of 1

9. When a bond matures & investor observes interest rate outside is lower, he is subject to

Re investment Risk

Interest Rate Risk

Credit Risk
Default Risk
Score 1.00 of 1

10. In Duration strategy the higher the duration the _________ the Capital Gain/Loss.

Higher

Lower
Similar
Same