What Is the Percentage Price Change for the Bond If

question 57

Multiple Choice

What is the percentage price change for the bond if interest rates decline 50 basis points from the original 5 percent?

• A)-2.106 percent.
• B)+2.579 percent.
• C)+0.000 percent.
• D)+3.739 percent.
• E)+2.444 percent. [Refer to: 9-83]

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