Provide an Appropriate Response

question 31

Multiple Choice

Provide an appropriate response.
-Which of the following is NOT a subset of the set {p,o,7}?

• A)7
• B){o,7}
• C)Ø
• D){p,o,7}

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering all payments of principal and interest.

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, representing the weighted average of the time until a bond's cash flows are received.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, where one basis point is equal to 1/100th of 1%.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, adjusted to account for changes in yield.