A Bond Is Selling in the Market for $1,100 and Has

question 77

Multiple Choice

A bond is selling in the market for $1,100 and has a duration of 4.5 years.Market interest rates are 5 percent and are expected to increase to 7 percent in the near future.What will this bond's price be after the change in market interest rates?

• A)$1,006
• B)$1,194
• C)$1,122
• D)$1,078
• E)$1,100

---

Definitions:

Empathy

The ability to understand and share the feelings of another person.

Genuineness

The quality of being open, honest, and sincere in one's dealings with others.

Acceptance

The act of receiving or consenting to something offered, often involving emotional or intellectual acknowledgment.

Client-centered Therapy

A therapeutic approach where the therapist provides a supportive environment allowing the client to lead the discussion and discover their own solutions.