A 4-Year Bond with a Price of 100

question 22

Multiple Choice

A 4-year bond with a price of 100.696 exists.The duration on the bond is 3.674.If the yield rises from 5.8% to 6.2%,what is the new bond price as estimated by the duration?

• A) $98.40
• B) $99.30
• C) $100.60
• D) $101.40

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Definitions:

Voting Leave

Employment leave provided to employees to cast their vote in public elections without losing pay.

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Benefits, besides pensions, that an employer provides to retirees, which could include health insurance, life insurance, and other perks.

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A financial product that provides a monetary payout to beneficiaries upon the death of the insured person.

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The maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of disease, illness, injury, and other physical and mental impairments in people.