An 8%, 15-Year Bond Has a Yield to Maturity of 10

question 63

Multiple Choice

An 8%, 15-year bond has a yield to maturity of 10% and duration of 8.05 years. If the market yield changes by 25 basis points, how much change will there be in the bond's price?

• A) 1.83%
• B) 2.01%
• C) 3.27%
• D) 6.44%

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Definitions:

Canalization

A genetic and developmental concept referring to the tendency of growth patterns to return to a genetically predetermined pathway despite environmental variations.

Kwashiorkor

A form of severe protein malnutrition, primarily affecting young children, leading to edema, poor growth, and other health issues.

Protein-Energy Malnutrition

A serious health condition resulting from a lack of dietary protein and calories, leading to body wasting and susceptibility to infections.

Neuron's Cell Body

the part of a neuron that contains the nucleus and most of the cell's organelles, serving as the processing area for neuronal signals.