Exhibit 18.3 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 34

Multiple Choice

Exhibit 18.3
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A $1000 par value bond with 4 years to maturity and a 5% coupon has a yield to maturity of 6%. Interest is paid annually.
-Refer to Exhibit 18.3. Estimate the percentage price change for this 4-year $1,000 par value bond, with annual 5% coupon, if the yield falls from 6% to 5.5%.

• A)-3.50%
• B)-1.75%
• C)1.75%
• D)3.50%
• E)None of the above

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Definitions:

Individualistic Model

A concept in ecology that emphasizes the importance of individual variation in influencing community structure.

Interaction

A kind of action that occurs as two or more objects have an effect upon one another. The idea of a two-way effect is essential in the concept of interaction, as opposed to a one-way causal effect.

Organismic Model

A perspective in biology and ecology that views an organism as a single, integrated unit.

Frederick Clements

An early 20th-century ecologist known for his theory of plant succession and the concept of the climax community.