Consider a Bond with a Duration of 8 Years Having

question 101

Multiple Choice

Consider a bond with a duration of 8 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)3.85%
• B)3.45%
• C)-4.02%
• D)-3.45%
• E)-3.85%

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Definitions:

Nontraditional College Student

A college student who does not follow the traditional pathway of entering college immediately after high school, possibly due to age, employment, or family commitments.

Financially Independent

The situation where an individual has ample personal financial resources to cover their living expenses, eliminating the requirement for active employment to afford basic life necessities.

Having Children

The process or act of conceiving and giving birth to offspring.

Working a Job

The act of being employed in a particular occupation or task for payment.