Consider a Bond with a Duration of 6 Years Having

question 50

Multiple Choice

Consider a bond with a duration of 6 years having a yield to maturity of 8% and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?

• A)2.88%
• B)3.45%
• C)-3.89%
• D)-3.45%
• E)-2.88%

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Definitions:

Independence

The state or quality of being self-reliant and not dependent on others for decision-making or support.

Imposter Phenomenon

The experience of feeling like a phony, a fraud, or a fake.

Unbiased Processing

The ability to see the good and the bad in the world and make decisions based on this information; part of authenticity.

Authenticity

The extent to which a person feels aligned to his or her true self.