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:

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and behavioral or expressive patterns.

Bulimia Nervosa

An eating disorder marked by binge eating followed by methods to avoid weight gain such as vomiting, excessive exercise, or fasting.

Binges

Episodes of excessive indulgence, typically relating to eating or drinking, beyond the point of feeling satiated.

Disgust

An intense feeling of aversion or revulsion typically elicited by something perceived as unpleasant or offensive.