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

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Definitions:

Urinary Tract Infection

An infection in any part of the urinary system, kidneys, bladder, or urethra, usually caused by bacteria.

Urine Production

The process by which kidneys filter waste from the blood and excrete it in the form of urine.

Urinary System

The organs and structures responsible for the production, storage, and elimination of urine from the body.

Vesicoureteral Reflux

A disorder in which urine flows backward from the bladder into the ureters/kidneys, potentially leading to kidney damage.