A 4-Year Bond with a Price of 100

question 22

Multiple Choice

A 4-year bond with a price of 100.696 exists.The duration on the bond is 3.674.If the yield rises from 5.8% to 6.2%,what is the new bond price as estimated by the duration?

• A) $98.40
• B) $99.30
• C) $100.60
• D) $101.40

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Definitions:

Genetic Drift

A mechanism of evolution that involves random changes in the frequency of alleles within a population over time, independent of natural selection.

Adaptive Traits

Characteristics of organisms that enhance their survival and reproduction in a specific environment, resulting from the process of natural selection.

Migration

The movement of organisms from one place to another, often cyclically or seasonally, driven by various factors such as food, climate, or breeding.

Genetic Distance

Genetic distance is a measure of how different populations are from each other genetically. Genetic distance can inform population geneticists about levels of inbreeding within a population or about the historic relationships between populations or species.