BUS/110.
BUSINESS
wiseman 2026/2027 BUSINESS
, FIN 101 - CH 6 Exam questions
with correct answers
2026/2027 Edition Graded A+
The degree of interest rate risk depends on _ .
a) how many times the interest rate changes in a year
b) the sensitivity of the bond's coupon rate to interest rate changes
c) the face value of a bond
d) the sensitivity of the bond's price to interest rate changes -
✅✅d) the sensitivity of the bond's price to interest rate changes
What is a corporate bond's yield to maturity (YTM)? Select all that
apply.
a) YTM is another term for the bond's coupon rate.
b) YTM is the prevailing market interest rate for bonds with similar
features.
c) YTM is the expected return for an investor who buys the bond
today and holds it to maturity.
d) YTM is the yield that will be earned if the bond is sold immediately
in the market. - ✅✅b) YTM is the prevailing market interest rate for
bonds with similar features.