A Bond Has a Modified Duration of 7

question 91

Multiple Choice

A bond has a modified duration of 7.22 and a yield to maturity of 8.1 percent.If interest rates increase by 75 basis points,the bond's price will decrease by ________ percent.

• A) -0.46
• B) -0.54
• C) -4.60
• D) -5.42
• E) -6.18

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Definitions:

Vital Signs

Measurements of the body's most basic functions, including temperature, pulse, respiration rate, and blood pressure.

Feedback

Information or reactions provided by others regarding someone's performance or behavior, often used as a mechanism for improvement.

Nursing Assistant

A healthcare professional trained to provide daily care and assistance to patients under the supervision of nursing staff.

Decentralized Decision-Making

A process in which decision-making authority is distributed among various levels within an organization rather than being concentrated at a single point.