The Outstanding Bonds of Alpha Extracts Have a Yield to Maturity

question 32

Multiple Choice

The outstanding bonds of Alpha Extracts have a yield to maturity of 5.2% and a modified duration of 8.3. If the yield to maturity instantly decreased to 4.7%, the bond's price would increase/decrease by ________%.

• A)−7.08
• B)−4.15
• C)+1.45
• D)+4.15
• E)+7.08

---

Definitions:

Critical Period

A specific time in development during which the presence or absence of certain experiences has a long-lasting influence on the individual.

Human Beings

Members of the species Homo sapiens, characterized by their capacity for complex language, abstract thinking, and social structures.

Attachment

A deep and enduring emotional bond that connects one person to another across time and space.

Social Deprivation

A condition resulting from a lack of regular and meaningful social contact and relationships, which can impact emotional and cognitive development.