Consider a Bond with a Duration of 8 Years Having

question 68

Multiple Choice

Consider a bond with a duration of 8 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) 3.85%
• B) 3.45%
• C) -4.02%
• D) -3.45%
• E) -3.85%

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Definitions:

Income Distribution

The way in which total income is shared among the population or different groups within the society.

In-kind Benefits

Non-cash assistance provided by governments or organizations, such as food, housing, or medical services, aimed at improving welfare.

Normative Concept

An idea or standard that prescribes how things should be or what people ought to do, often based on values or ethical considerations.

Political Process

The methods and procedures used in the operation and governance of a political entity or organization.