medium · Debt Capital Markets Bond Instruments & Structures
An investor buys a 10-year bond at a price of 90.00. Over one year, the bond's yield remains unchanged, but the price rises to 91.50 as it becomes a 9-year bond.
This price increase is known as:
- Roll-down
- Accrued interest
- Carry
- Convexity
Sign up free to see the explanation and track your rank →
More Debt Capital Markets Bond Instruments & Structures practice
- What is a 'deferred call'?
- If a bond is 'callable at par,' what is the issuer's redemption cost per $1,000 of face…
- What does a 5-year bond described as 'NC2' signify regarding its call protection?
- If a bond has a 'Par Call' feature starting 6 months before maturity, what does this mean?
- What is a 'call schedule' for a corporate bond?
- Which of the following describes a 'step-up' coupon in a callable bond?
- What is the main disadvantage for an issuer when using a 'make-whole' call instead of a…
- If a company has a leverage-based pricing grid and SOFR rises significantly while…
All Bond Instruments & Structures questions · Debt Capital Markets study guide · Debt Capital Markets glossary · Debt Capital Markets flashcards