APMA Unit 4 Question and answers
already passed 2025/2026
Current Yield - correct answer ✔a bond's annual coupon divided by its current price
Yield to maturity - correct answer ✔the rate required in the market on a bond
Yield to call - correct answer ✔the rate of return earned on a bond when it is called before its maturity
date (usually when rates decrease)
A bond portfolio that is earmarked to meet a future goal is fully immunized when... - correct answer
✔The duration of the liability equals the duration of the bond portfolio
already passed 2025/2026
Current Yield - correct answer ✔a bond's annual coupon divided by its current price
Yield to maturity - correct answer ✔the rate required in the market on a bond
Yield to call - correct answer ✔the rate of return earned on a bond when it is called before its maturity
date (usually when rates decrease)
A bond portfolio that is earmarked to meet a future goal is fully immunized when... - correct answer
✔The duration of the liability equals the duration of the bond portfolio