A Bond with Exactly Nine Years Remaining Until Maturity Offers

question 12

Multiple Choice

a bond with exactly nine years remaining until maturity offers a 3% coupon rate with annual coupons. The bond, with a yield-to-maturity of 5%, is priced at 85.784357 per 100 of par value. The estimated price value of a basis point for the bond is closest to:

• A) 0.0086.
• B) 0.0648.
• C) 0.1295.

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Definitions:

Error Signal

An error signal is a measurement in control systems that represents the difference between a desired setpoint and the actual output of the system, used to correct or adjust the system's performance.

Outputs

Refers to the signals or data sent from a system to actuate or inform another system or component.

Thermocouple Temperature

A measure of temperature using a thermocouple, a type of temperature sensor made from two different metals joined at one end that generates a voltage proportional to temperature.

LED Display

A screen or panel comprised of light-emitting diodes, used for displaying information visually.