An 8%, 30-Year Bond Has a Yield to Maturity of 10

question 79

Multiple Choice

An 8%, 30-year bond has a yield to maturity of 10% and a modified duration of 8 years. If the market yield drops by 15 basis points, there will be a ________ in the bond's price.

• A) 1.15% decrease
• B) 1.2% increase
• C) 1.53% increase
• D) 2.43% decrease

---

Definitions:

MDS

Multi-Dimensional Scaling, a statistical technique used for exploring similarities or differences in data, often applied in fields like psychology, marketing, and information science.

Talent

Refers to the natural abilities, skills, and expertise that individuals possess, which are valuable and necessary for organizational success and performance.

Management Potential

The capacity or ability of an individual to occupy and perform effectively in managerial roles within an organization.

Special Assignment

A unique task or project given to an employee or a team that is outside their regular duties, often requiring specific skills or high levels of responsibility.