If Interest Rates Increase by 20 Basis Points (I

question 2

Multiple Choice

If interest rates increase by 20 basis points (i.e., ΔR = 20 basis points) , use the duration approximation to determine the approximate price change for the Treasury note.

• A)$0.000.
• B)$0.2775 per $100 face value.
• C)$2.775 per $100 face value.
• D)$0.2672 per $100 face value.
• E)$2.672 per $100 face value. [Refer to: 9-95]

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Definitions:

Authoritarianism

A governing or leadership style characterized by absolute or blind obedience to authority, as opposed to individual freedom and related to centralization of power.

Machiavellianism

A personality trait that involves manipulation and exploitation of others, a lack of morality, and a focus on self-interest and deception.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding conflicting beliefs, ideas, or values.

Opportunities for Promotion

refer to the prospects or avenues available within an organization for employees to advance to higher positions.