SET 2 PRACTICE QUESTIONS Returns and Bonds Chapters 6-9

a. Bond prices are quoted as a percentage of par value. b. Bonds do not trade on an accrued interest basis. c. With bond price quotes, 1 point = $1. d. Current yield is the ratio of the coupon to the par value of the bond. 58. On one recent day, the 30-year Treasury bond price moved 1 3/32 as yields rose. This means that the bond price. a. Rose ... ................
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