Which bond has the longest duration
1) Which bond has the longest duration? (Assume equal creditworthiness for each.)
a) 8-year maturity, 6% coupon
b) 8-year maturity, 11% coupon
c) 15 year maturity, 6% coupon
d) 15-year maturity, 11% coupon
2) What is implied volatility? What is its source?
a) Stock momentum; Sharpe Ratio
b) Expected standard deviation of stock price(s); option prices
c) Beta divided by total risk; market portfolio
d) Option price momentum; risk-free rate
