Exhibit 18.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 16

Multiple Choice

Exhibit 18.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually.
-Refer to Exhibit 18.1. Estimate the percentage price change for this 5-year $1,000 par value bond, with a 6% coupon, if the yield rises from 8% to 8.5%. Interest is paid semiannually.

• A)2.1%
• B)-2.1%
• C)4.4%
• D)-4.4%
• E)None of the above

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Definitions:

VFD

Variable Frequency Drive, a type of motor controller that drives an electric motor by varying the frequency and voltage supplied to the electric motor.

Electronic Circuitry

The network of electronic components and connections designed to perform a specific function, like amplifying a signal or computing data.

Control Voltage

The voltage used in a control circuit which commands the operation of electrical devices.

Digital Input

An input signal to a device or system that takes the form of binary (0 or 1) data, used in electronic devices for configuring or controlling operations.