Consider a Bond That Pays Annually an 8% Coupon with 20

question 54

Multiple Choice

Consider a bond that pays annually an 8% coupon with 20 years to maturity.The amount that the price of the bond will change if its yield to maturity increases from 5% to 7% is closest to:

• A)-$270.
• B)-$225.
• C)-$310.
• D)-$250.

---

Definitions:

Absences

Instances of not being present where one is expected, often noted in contexts like employment or school attendance.

Psychotic Disorder

A mental health condition characterized by a disconnection from reality, which might include hallucinations, delusions, and impaired thought processes.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions and feelings.

Dissociative Disorders

A group of mental disorders characterized by a disconnection between thoughts, identity, consciousness, and memory.