1. If the reinvestment rate exceeds the yield-to-maturity, the Realized Compound Yield will be greater or less than the yield-to-maturity. Which is it?
2. True or False: If there is a perfect offset of the Price- and Reinvestment-risks, the RCY will NOT be equal to the YTM.
3. If the YTM is negative, the nominal value of the bond’s cash flows will be greater than or less than the dollar price. Which is it?
4. True or False : The Price -Yield Curve is asymptotic to the vertical axis.
5. True or False: As Yields decrease down, prices increase decreasingly.