INV2601 Assignment 2.

INV2601 Assignment 2. 5/13/2020 myModules : INV2601-20-S1 : Online Assessment 1.0 Points 2 Assignment INV2601 TABLE OF CONTENTS Time Remaining: 1:05:50 Hide/Show Time Remaining Part 1 of 1 - Question 1 of 20 According to the liquidity preference theory, which of the following statements is least accurate? A. Investors perceive little risk differential between short-term and long-term securities. B. Investors always prefer the higher liquidity of short-term bonds and any deviance from an upward sloping yield curve is only temporary. C. Borrowers will pay a premium for long-term funds to avoid having to roll over short-term debt. D. All else equal, investors prefer short-term securities over long-term securities. Reset Selection Previous Next Save myModules myAdmin INV2601-20-S1 / Online Assessment Online Assessment Online Assessment ▲ Question Pro gress ▲ 5/13/2020 myModules : INV2601-20-S1 : Online Assessment 1.0 Points 2 Assignment INV2601 TABLE OF CONTENTS Time Remaining: 1:02:39 Hide/Show Time Remaining Part 1 of 1 - Question 2 of 20 Consider a 30 year, R1 000 semi-annual-pay bond with a 9% coupon and a 13.20% yield to maturity. Based on a change in the yield to maturity of 1.20%, the effective duration of the bond is closest to… A. 7.55 B. 6.84 C. 8.67 D. 9.22 Reset Selection Previous Next Save