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End-of-Module Quiz

Fixed Income — 5 questions

Q1

As a bond approaches maturity, its price will:

Q2

A floating-rate note's coupon resets periodically based on a reference rate. This feature primarily reduces:

Q3

An investment-grade bond is one rated at least:

Q4

Convexity is a desirable property for bond investors because:

Q5

The Macaulay duration of a zero-coupon bond with 8 years to maturity is: