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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Definitions:

Coral Polyps

Small, typically colonial marine organisms that are a major component of coral reefs, secreting calcium carbonate to form a hard skeleton.

Jellyfish

Gelatinous marine animals belonging to the phylum Cnidaria, known for their umbrella-shaped bodies and trailing tentacles.

Arthropods

Invertebrates with exoskeletons, segmented bodies, and jointed limbs, including insects, arachnids, and crustaceans.