Which of the following statements are false? (8.4) 1. If the Macaulay duration (D) of...
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Which of the following statements are false? (8.4) 1. If the Macaulay duration (D) of an asset is 48 months, then if interest rates fall by 0.5% the market value of this asset will increase by approximately 48% II. At a given rate i, a 10-year bond with coupons at 8% and F=1000 = C will have the same duration as a 10-year bond with coupons at 8% and F = 250,000 = C. III. Government of Canada bonds will have a higher liquidity risk than most corporate bonds O A. All statements are false OB. All but (II) O C. All but (III) D. All but (1) Which of the following statements are false? (8.4) 1. If the Macaulay duration (D) of an asset is 48 months, then if interest rates fall by 0.5% the market value of this asset will increase by approximately 48% II. At a given rate i, a 10-year bond with coupons at 8% and F=1000 = C will have the same duration as a 10-year bond with coupons at 8% and F = 250,000 = C. III. Government of Canada bonds will have a higher liquidity risk than most corporate bonds O A. All statements are false OB. All but (II) O C. All but (III) D. All but (1)
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