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If Yields Increase by 10 Basis Points, What Is the Approximate

question 47

Multiple Choice

If yields increase by 10 basis points, what is the approximate price change on the $100,000 Treasury note? Use the duration approximation relationship.


Definitions:

Shift Right

In economic terms, a shift to the right of a demand or supply curve represents an increase in demand or supply.

Remaining Firms

The number of businesses that continue to operate in a market after others have exited, often in response to economic conditions or competitive pressures.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Long-Run Equilibrium

A state in a market where all firms are making zero economic profit, input factors are fully adjustable, and no firm has an incentive to enter or exit the market.

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