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:

Training Future Citizens

The process of educating and instilling civic values in young people to prepare them for responsible participation in society.

Legal Responsibility

An obligation under the law to act in a specified way or to carry out certain duties, with potential legal consequences for failure to comply.

Independent Judgment

The ability or act of making a decision or forming an opinion based on one's own reasoning and understanding, without undue influence from others.

Deborah Sampson

A woman who disguised herself as a man to serve in the Continental Army during the American Revolutionary War.