米什金 货币金融学 英文版习题答案chapter 6英文习题

Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 6 The Risk and Term Structure of Interest Rates
6.1 Risk Structure of Interest Rates
1) The risk structure of interest rates is
A) the structure of how interest rates move over time.
B) the relationship among interest rates of different bonds with the same maturity.
C) the relationship among the term to maturity of different bonds.
D) the relationship among interest rates on bonds with different maturities.
Answer: B
AACSB: Reflective Thinking
2) The risk that interest payments will not be made, or that the face value of a bond is not repaid when a bond matures is
A) interest rate risk.
B) inflation risk.
C) liquidity risk.
D) default risk.
Answer: D
AACSB: Application of Knowledge
3) Bonds with no default risk are called
A) flower bonds.
B) no-risk bonds.
C) default-free bonds.
D) zero-risk bonds.
Answer: C
AACSB: Application of Knowledge
4) Which of the following bonds are considered to be default-risk free?
A) municipal bonds
B) investment-grade bonds
C) U.S. Treasury bonds
D) junk bonds
Answer: C
AACSB: Analytical Thinking
5) U.S. government bonds have no default risk because
A) they are issued in strictly limited quantities.
B) the federal government can increase taxes or print money to pay its obligations.
C) they are backed with gold reserves.
D) they can be exchanged for silver at any time.
Answer: B
AACSB: Reflective Thinking
6) The spread between the interest rates on bonds with default risk and default-free bonds is called the
A) risk premium.
B) junk margin.
C) bond margin.
D) default premium.
Answer: A
AACSB: Application of Knowledge
7) If the probability of a bond default increases because corporations begin to suffer large losses, then the default risk on corporate bonds will ________ and the expected return on these bonds will ________, everything else held constant.
A) decrease; increase
B) decrease; decrease
C) increase; increase
D) increase; decrease
Answer: D
AACSB: Reflective Thinking
8) A bond with default risk will always have a ________ risk premium and an increase in its default risk will ________ the risk premium.
A) positive; raise
B) positive; lower
C) negative; raise
D) negative; lower
Answer: A
AACSB: Reflective Thinking
9) If a corporation begins to suffer large losses, then the default risk on the corporate bond will
A) increase and the bond's return will become more uncertain, meaning the expected return on the corporate bond will fall.
B) increase and the bond's return will become less uncertain, meaning the expected return on the corporate bond will fall.
C) decrease and the bond's return will become less uncertain, meaning the expected return on the corporate bond will fall.
D) decrease and the bond's return will become less uncertain, meaning the expected return on the corporate bond will rise.
Answer: A
AACSB: Reflective Thinking
10) If the possibility of a default increases because corporations begin to suffer losses, then the default risk on corporate bonds will ________, and the bonds' returns will become ________ uncertain, meaning that the expected return on these bonds will decrease, everything else held constant.
A) increase; less
B) increase; more
C) decrease; less
D) decrease; more
Answer: B
AACSB: Reflective Thinking
11) Other things being equal, an increase in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the
________.
A) right; right
B) right; left
C) left; right
D) left; left
Answer: C
AACSB: Reflective Thinking
12) Other things being equal, a decrease in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the
________.
A) right; right
B) right; left
C) left; right
D) left; left
Answer: B
AACSB: Reflective Thinking
13) A(n) ________ in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the yield on corporate bonds, all else equal.
A) increase; increase; increase
B) increase; decrease; increase
C) decrease; increase; increase
D) decrease; decrease;decrease
Answer: B
AACSB: Reflective Thinking
14) An increase in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the price of Treasury bonds, everything else held constant.
A) increase; increase
B) reduce; reduce
C) reduce; increase
D) increase; reduce
Answer: C
AACSB: Reflective Thinking
15) A decrease in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the price of Treasury bonds, everything else held constant.
A) increase; increase
B) reduce; reduce
C) reduce; increase
D) increase; reduce
Answer: D
AACSB: Reflective Thinking
16) An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant.
A) increase; increase
B) reduce; reduce
C) increase; reduce
D) reduce; increase
Answer: C
AACSB: Reflective Thinking
17) A decrease in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant.
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease; increase
Answer: D
AACSB: Reflective Thinking
18) An increase in default risk on corporate bonds ________ the demand for these bonds, but ________ the demand for default-free bonds, everything else held constant.
A) increases; lowers
B) lowers; increases
C) does not change; greatly increases
D) moderately lowers; does not change
Answer: B
AACSB: Reflective Thinking
19) A decrease in default risk on corporate bonds ________ the demand for these bonds, and
________ the demand for default-free bonds, everything else held constant.
A) increases; lowers
B) lowers; increases
C) does not change; greatly increases
D) moderately lowers; does not change
Answer: A
AACSB: Reflective Thinking
20) As default risk increases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant.
A) increases; less
B) increases; more
C) decreases; less
D) decreases; more
Answer: D
AACSB: Reflective Thinking
21) As default risk decreases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant.
A) increases; less
B) increases; more
C) decreases; less
D) decreases; more
Answer: A
AACSB: Reflective Thinking
22) As their relative riskiness ________, the expected return on corporate bonds ________ relative to the expected return on default-free bonds, everything else held constant.
A) increases; increases
B) increases; decreases
C) decreases; decreases
D) decreases; does not change
Answer: B
AACSB: Reflective Thinking
23) Which of the following statements are TRUE?
A) A decrease in default risk on corporate bonds lowers the demand for these bonds, but increases the demand for default-free bonds.
B) The expected return on corporate bonds decreases as default risk increases.
C) A corporate bond's return becomes less uncertain as default risk increases.
D) As their relative riskiness increases, the expected return on corporate bonds increases relative to the expected return on default-free bonds.
Answer: B
AACSB: Reflective Thinking
24) Everything else held constant, if the federal government were to guarantee today that it will pay creditors if a corporation goes bankrupt in the future, the interest rate on corporate bonds will ________ and the interest rate on Treasury securities will ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Answer: C
AACSB: Reflective Thinking
25) Bonds with relatively high risk of default are called
A) Brady bonds.
B) junk bonds.
C) zero coupon bonds.
D) investment grade bonds.
Answer: B
AACSB: Analytical Thinking
26) Junk bonds, bonds with a low bond rating, are also known as
A) high-yield bonds.
B) investment grade bonds.
C) high quality bonds.
D) zero-coupon bonds.
Answer: A
AACSB: Application of Knowledge
27) Bonds with relatively low risk of default are called ________ securities and have a rating of Baa (or BBB) and above; bonds with ratings below Baa (or BBB) have a higher default risk and are called ________.
A) investment grade; lower grade
B) investment grade; junk bonds
C) high quality; lower grade
D) high quality; junk bonds
Answer: B
AACSB: Analytical Thinking
28) Which of the following bonds would have the highest default risk?
A) municipal bonds
B) investment-grade bonds
C) U.S. Treasury bonds
D) junk bonds
Answer: D
AACSB: Reflective Thinking
29) Which of the following long-term bonds has the highest interest rate?
A) corporate Baa bonds
B) U.S. Treasury bonds
C) corporate Aaa bonds
D) municipal bonds
Answer: A
AACSB: Reflective Thinking
30) Which of the following securities has the lowest interest rate?
A) junk bonds
B) U.S. Treasury bonds
C) investment-grade bonds
D) corporate Baa bonds
Answer: B
AACSB: Reflective Thinking
31) The spread between interest rates on low quality corporate bonds and U.S. government bonds
A) widened significantly during the Great Depression.
B) narrowed significantly during the Great Depression.
C) narrowed moderately during the Great Depression.
D) did not change during the Great Depression.
Answer: A
AACSB: Reflective Thinking
32) During the Great Depression years 1930-1933 there was a very high rate of business failures and defaults, we would expect the risk premium for ________ bonds to be very high.
A) U.S. Treasury
B) corporate Aaa
C) municipal
D) corporate Baa
Answer: D
AACSB: Reflective Thinking
33) Risk premiums on corporate bonds tend to ________ during business cycle expansions and ________ during recessions, everything else held constant.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Answer: C
AACSB: Reflective Thinking
34) The collapse of the subprime mortgage market
A) did not affect the corporate bond market.
B) increased the perceived riskiness of Treasury securities.
C) reduced the Baa-Aaa spread.
D) increased the Baa-Aaa spread.
Answer: D
AACSB: Reflective Thinking
35) The collapse of the subprime mortgage market increased the spread between Baa and default-free U.S. Treasury bonds. This is due to
A) a reduction in risk.
B) a reduction in maturity.
C) a flight to quality.
D) a flight to liquidity.
Answer: C
AACSB: Analytical Thinking
36) During a "flight to quality"
A) the spread between Treasury bonds and Baa bonds increases.
B) the spread between Treasury bonds and Baa bonds decreases.
C) the spread between Treasury bonds and Baa bonds is not affected.
D) the change in the spread between Treasury bonds and Baa bonds cannot be predicted. Answer: A
AACSB: Reflective Thinking
37) If you have a very low tolerance for risk, which of the following bonds would you be least likely to hold in your portfolio?
A) a U.S. Treasury bond
B) a municipal bond
C) a corporate bond with a rating of Aaa
D) a corporate bond with a rating of Baa
Answer: D
AACSB: Reflective Thinking
38) Which of the following statements is TRUE?
A) A liquid asset is one that can be quickly and cheaply converted into cash.
B) The demand for a bond declines when it becomes less liquid, decreasing the interest rate spread between it and relatively more liquid bonds.
C) The differences in bond interest rates reflect differences in default risk only.
D) The corporate bond market is the most liquid bond market.
Answer: A
AACSB: Reflective Thinking
39) Corporate bonds are not as liquid as government bonds because
A) fewer corporate bonds for any one corporation are traded, making them more costly to sell.
B) the corporate bond rating must be calculated each time they are traded.
C) corporate bonds are not callable.
D) corporate bonds cannot be resold.
Answer: A
AACSB: Reflective Thinking
40) When the Treasury bond market becomes more liquid, other things equal, the demand curve for corporate bonds shifts to the ________ and the demand curve for Treasury bonds shifts to the ________.
A) right; right
B) right; left
C) left; right
D) left; left
Answer: C
AACSB: Reflective Thinking
41) When the Treasury bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the ________ and the demand curve for Treasury bonds shifts to the ________.
A) right; right
B) right; left
C) left; right
D) left; left
Answer: B
AACSB: Reflective Thinking
42) A decrease in the liquidity of corporate bonds, other things being equal, shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds shifts to the ________.
A) right; right
B) right; left
C) left; left
D) left; right
Answer: D
AACSB: Reflective Thinking
43) An increase in the liquidity of corporate bonds, other things being equal, shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds shifts to the ________.
A) right; right
B) right; left
C) left; left
D) left; right
Answer: B
AACSB: Reflective Thinking
44) A(n) ________ in the liquidity of corporate bonds will ________ the price of corporate。