CFA-Level-I Exam Question 286
The time it takes an auto mechanic to replace a carburetor is known to follow a normal distribution with a mean of 53 minutes and a standard deviation of 7.5 minutes. This means that
CFA-Level-I Exam Question 287
Which of the following statements about duration characteristics are true?
I). The duration of a coupon bond will always be less than its term to maturity.
II). There is generally an inverse relationship between term to maturity and duration.
III). There is a positive relationship between coupon and duration.
IV). There is an inverse relationship between yield to maturity and duration.
I). The duration of a coupon bond will always be less than its term to maturity.
II). There is generally an inverse relationship between term to maturity and duration.
III). There is a positive relationship between coupon and duration.
IV). There is an inverse relationship between yield to maturity and duration.
CFA-Level-I Exam Question 288
A share of preferred stock pays a specific dividend on a specific schedule for as long as the issuing company exists. Assume that a share of preferred stock pays an annual, per-share, dividend of $6.75 at the end of each year. The (present) value of this share of preferred stock is $75.62. Assume that the company paying the dividends will exist forever. What interest rate or rate of return do this dividend and price represent?