Par-Value-Bond F Has a Modified Duration of 9

question 34

Multiple Choice

Par-value-bond F has a modified duration of 9. Which one of the following statements regarding the bond is true?

• A) If the market yield increases by 1%, the bond's price will decrease by $90.
• B) If the market yield increases by 1%, the bond's price will increase by $90.
• C) If the market yield increases by 1%, the bond's price will decrease by $60.
• D) If the market yield decreases by 1%, the bond's price will increase by $60.

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The process of making an issue or situation clear and comprehensible by identifying its specifics and boundaries.

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The cognitive process of re-framing negative events or situations in a positive or benign light to cope with challenges and stress.

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A practical approach to solving problems or dealing with situations based on everyday knowledge and practical experience rather than theoretical understanding.

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