GWU TIPS Is Normally Adjusted in Regard to Consumer Price Index Questions

1. Yields and Prices.

1. (a) Define the following yield concepts:• Redemption yield• Par yield
   • Yield to put
   • Yield to worst
2. (b) Can a zero and an otherwise identical, maturity-matched level-coupon bond ever havethe same duration?
3. (c) A 3M T-bill currently sells for 98:08 (what does this quotation mean?). Calculate itsbond equivalent yield.
4. (d) Calculate the discount yield of the preceding 3M T-bill currently selling for 98:08.
5. (e) What does convexity measure and how is it used in the assessment of interest rate risk?

other questions in files.