Par-Value-Bond GE Has a Modified Duration of 11

question 37

Multiple Choice

Par-value-bond GE has a modified duration of 11. Which one of the following statements regarding the bond is true?

• A) If the market yield increases by 1%, the bond's price will decrease by $55.
• B) If the market yield increases by 1%, the bond's price will increase by $55.
• C) If the market yield increases by 1%, the bond's price will decrease by $110.
• D) If the market yield increases by 1%, the bond's price will increase by $110.

---

Definitions:

Advertising Expenditures

The amount of money spent on promoting products, services, or brands to potential customers through various media channels.

Profit Functions

A profit function represents the relationship between a firm's profits and the level of output, prices, and costs.

Nash Equilibrium

An idea in game theory where a player cannot gain by altering their strategy if all other players maintain their current strategies.

Advertising Expenditures

The amount of money spent on promoting products, services, or brands through various media channels.