A 9%, 16-Year Bond Has a Yield to Maturity of 11

question 7

Multiple Choice

A 9%, 16-year bond has a yield to maturity of 11% and duration of 9.25 years. If the market yield changes by 32 basis points, how much change will there be in the bond's price?

• A) 1.85%
• B) 2.01%
• C) 2.67%
• D) 6.44%

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Definitions:

13C NMR Spectrum

A representation of the nuclear magnetic resonance of carbon-13 atoms within a molecule, revealing the distinct chemical environments of carbon atoms.

Carbonyl Carbon

The carbonyl carbon is the carbon atom of a carbonyl group (C=O), doubly bonded to an oxygen atom and bonded to two other atoms or groups, which can vary depending on the specific carbonyl compound (e.g., aldehydes, ketones).

Cyclohexylacetic Acid

An organic compound featuring a cyclohexane ring attached to an acetic acid group, used in the synthesis of various pharmaceuticals and chemical products.

Synthetic Route

An outlined series of chemical reactions leading to the synthesis of a complex molecule from simpler starting materials.