A Bond Has a Modified Duration of 5

question 67

Multiple Choice

A bond has a modified duration of 5.87 years, a par value of $1,000, and a current market value of $1,008. What is the dollar value of an 01?

• A)$.0698
• B)$.0700
• C)$.5917
• D)$.6401
• E)$.7023

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Definitions:

Internal Locus

The belief that one has control over their own life and outcomes, rather than external forces having that control.

Control

The power to influence or direct people's behavior or the course of events.

Implicit Assumption

An unstated belief or premise that influences attitudes, actions, and decisions without explicit acknowledgment.

Behavioral Approach

A methodology focusing on understanding and modifying individuals' behaviors through studying their actions and reactions.