Consider a Bond with a Duration of 6 Years Having

question 16

Multiple Choice

Consider a bond with a duration of 6 years having a yield to maturity of 8% and interest rates are expected to rise by 50 basis points.What is the percentage change in the price of the bond?

• A) 2.88%
• B) 3.45%
• C) -3.89%
• D) -3.45%
• E) -2.88%

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Middle Age

A period in adult life roughly between the ages of 40 and 65, characterized by personal, social, and career adjustments and preparations for later life.

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The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

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