A Bond Has an Annual Modified Duration of 7

question 11

Multiple Choice

a bond has an annual modified duration of 7.140 and annual convexity of 66.200. The bond's yield-to-maturity is expected to increase by 50 basis points. The expected percent-Age price change is closest to:

• A) −3.40%.
• B) −3.49%.
• C) −3.57%

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Definitions:

Open Shop Movement

A movement advocating for workplaces where union membership is not required as a condition of employment, promoting voluntary association.

Employee Rights

The legal entitlements concerning the workplace that employees are guaranteed by law, including the right to fair wages, safe working conditions, and freedom from discrimination and harassment.

Open Shop Movement

A movement aimed at ensuring that employment is not conditional upon union membership, allowing workers the choice to join a union or not.

Well-Meaning Workers

Refers to employees who have good intentions and aim to perform their duties ethically and proficiently, contributing positively to their work environment.