Consider a Bond with a Duration of 7 Years Having

question 24

Multiple Choice

Consider a bond with a duration of 7 years having a yield to maturity of 7% and interest rates are expected to rise by 50 basis points.What is the percentage change in the price of the bond?

• A) 3.62%
• B) 3.45%
• C) -3.38%
• D) 3.38%
• E) -3.62%

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Definitions:

Account Management Policy Grid

A strategic framework used to classify and manage a company's customers or accounts based on their value and the complexity of the account to optimize service and resources.

Level of Opportunity

The extent to which an environment or situation provides individuals or organizations with the possibility to achieve success or advance their goals.

Competitive Sales Position

A company's strategic advantage in the market based on factors such as product quality, price, and customer service, which enables it to outsell its competitors.

Unilateral Mistake

A mistake by one party to the agreement.