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.

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Definitions:

Transcription

The process of copying a segment of DNA into RNA, an essential step in gene expression.

tRNA Triplet

A sequence of three nucleotides in transfer RNA that is complementary to the codon in messenger RNA and specifies a particular amino acid during protein synthesis.

mRNA

A category of RNA known as messenger RNA transfers the genetic blueprint from DNA to the ribosome, dictating the sequence of amino acids in proteins produced through gene expression.

Promoter

A specific region of DNA that initiates transcription of a particular gene, playing a crucial role in gene expression.