If Interest Rates Increase from 3% to 4%, a $100,000

question 78

Multiple Choice

If interest rates increase from 3% to 4%, a $100,000 10 year bond with a duration of 8 years would ________ in price by approximately ________.

• A) increase; 7.8%
• B) decrease; 7.8%
• C) increase; 9.7%
• D) decrease; 9.7%

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Definitions:

Subordinate Groups

Groups of people in a society who have less power, authority, and status compared to the dominant groups, often facing discrimination and inequality.

Societal Problems

Issues that affect a significant number of people within a society, often challenging the community's ability to function effectively.

An Ethnic Group

Comprises people whose perceived cultural markers are deemed socially significant. Ethnic groups differ from one another in terms of language, religion, customs, values, ancestors, and the like.

Geography

The study of places and the relationships between people and their environments.