Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

American Bankers Association CTFA Exam - Topic 1 Question 69 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 69
Topic #: 1
[All CTFA Questions]

The sensitivity of coupon price to change in its yield:

Show Suggested Answer Hide Answer
Suggested Answer: B

by Carin at Jul 03, 2024, 11:00 PM

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Joanna
4 months ago
I thought it was directly related! A seems too simple.
upvoted 0 times
...
Cyndy
4 months ago
C sounds right, but I’m not sure about the greater sensitivity part.
upvoted 0 times
...
Leila
4 months ago
Wait, is it really constant for all yields? D seems off.
upvoted 0 times
...
Angella
4 months ago
Totally agree with B! Makes sense.
upvoted 0 times
...
Shonda
4 months ago
B is the correct answer! Inverse relationship.
upvoted 0 times
...
Latricia
5 months ago
I recall something about how the price sensitivity varies with yield changes, but I can't remember if it’s greater for increases or decreases. This is tricky!
upvoted 0 times
...
Tiera
5 months ago
I practiced a similar question, and I think the sensitivity is not constant, which makes me lean towards option B or C.
upvoted 0 times
...
Lucy
5 months ago
I’m not completely sure, but I feel like the sensitivity of coupon prices changes more with increases in yield. Maybe option C?
upvoted 0 times
...
Lawanda
5 months ago
I remember studying that bond prices and yields have an inverse relationship, so I think option B might be correct.
upvoted 0 times
...
Erick
5 months ago
This seems straightforward to me. The sensitivity of a bond's price to changes in its yield is inversely related to the bond's yield to maturity. That means option B is the correct answer.
upvoted 0 times
...
Wei
5 months ago
I'm a bit confused on this one. I know the relationship between bond prices and yields, but I'm not sure if the sensitivity is constant or not. I'll have to review my notes and make an educated guess.
upvoted 0 times
...
Abel
5 months ago
Okay, I remember learning that bond prices and yields have an inverse relationship. So the higher the yield, the more sensitive the price will be to changes in that yield. I'll select option B.
upvoted 0 times
...
Yolande
5 months ago
I'm pretty confident about this one. The sensitivity of a bond's price to changes in its yield is inversely related to the bond's yield to maturity, so I'll go with option B.
upvoted 0 times
...
Kati
5 months ago
Hmm, this is a tricky one. I'm not sure if the sensitivity is greater for increases or decreases in yield to maturity. I'll have to think this through carefully before answering.
upvoted 0 times
...
Reuben
5 months ago
Traceroute is the tool that produces this kind of output, I'm confident about that. Now I just need to select the correct answer.
upvoted 0 times
...
Joni
6 months ago
I feel like using PL/SQL directly from other applications would go against the best practices of microservices. It just doesn't seem right to me.
upvoted 0 times
...
Frankie
6 months ago
I'm a bit confused by the wording of the question. Is it asking about the different types of DAM, or how it's used? I want to make sure I understand the question fully before answering.
upvoted 0 times
...
Sheron
10 months ago
Ah, the age-old question of bond price sensitivity. It's all about the derivative, my friends. Just differentiate the bond price with respect to the yield and there's your answer. Simple as pi.
upvoted 0 times
Xuan
9 months ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Odelia
10 months ago
B) Is inversely related to the bond's yield to maturity
upvoted 0 times
...
Brigette
10 months ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Susy
10 months ago
B) Is inversely related to the bond's yield to maturity
upvoted 0 times
...
Maddie
10 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
Edelmira
10 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
...
Alona
11 months ago
Wait, we're talking about coupons? I thought this was a test on how to maximize my snack budget. Where's the multiple-choice question on whether Doritos or Cheetos are the superior chip?
upvoted 0 times
...
Shawna
11 months ago
D can't be right, can it? The sensitivity has to depend on whether the yield is going up or down. Unless the bond market is just a giant game of Calvinball, that is.
upvoted 0 times
Doretha
10 months ago
D can't be right, can it? The sensitivity has to depend on whether the yield is going up or down.
upvoted 0 times
...
Brice
10 months ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Jerry
10 months ago
B) Is inversely related to the bond's yield to maturity
upvoted 0 times
...
Na
10 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
...
Kimbery
11 months ago
C seems like the correct answer to me. The sensitivity is greater for increases in yield to maturity than for decreases. It's like the bond market is more sensitive to bad news than good news. Go figure!
upvoted 0 times
Magnolia
10 months ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Lawrence
10 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
...
Almeta
11 months ago
I think the sensitivity is greater for increases in yield to maturity than for decreases.
upvoted 0 times
...
Glenn
11 months ago
Hmm, I'm not sure about this one. I'll have to think it through a bit more. Maybe I should have studied bond pricing formulas a little harder.
upvoted 0 times
...
Golda
11 months ago
I think the answer is B. The sensitivity of the coupon price is inversely related to the bond's yield to maturity. This makes sense because as the yield increases, the price of the bond decreases.
upvoted 0 times
Cathrine
9 months ago
D) Is constant regardless of whether the yield to maturity increases or decreases
upvoted 0 times
...
Jeff
9 months ago
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
upvoted 0 times
...
Ronny
9 months ago
B) Is inversely related to the bond's yield to maturity
upvoted 0 times
...
Pearlene
10 months ago
A) Is directly related to the bond's yield
upvoted 0 times
...
...
Salome
11 months ago
I disagree, I believe it is inversely related to the bond's yield to maturity.
upvoted 0 times
...
Yuonne
11 months ago
I think the sensitivity of coupon price is directly related to the bond's yield.
upvoted 0 times
...

Save Cancel