A Bond with Duration of 5

question 19

Multiple Choice

A bond with duration of 5.7 years has a yield to maturity of 9 percent. The bond's volatility (modified duration) is

• A)1.9 percent.
• B)5.2 percent.
• C)5.7 percent.
• D)9.0 percent.

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Definitions:

Contingency Approach

A management theory that suggests the effectiveness of a decision or leadership style is contingent upon the context and situation in which it is applied.

Personal Characteristics

The traits, qualities, or attributes that contribute to an individual's distinctive personality.

Emotional Intelligence

the ability to recognize, understand, and manage one's own emotions as well as the emotions of others.

Organizational Objectives

The specific, measurable goals that an organization aims to achieve in order to fulfill its mission and move towards its vision.