The Outstanding Bonds of Alpha Extracts Have a Yield to Maturity

question 30

Multiple Choice

The outstanding bonds of Alpha Extracts have a yield to maturity of 8.4 percent and a modified duration of 10.8.If the yield to maturity instantly decreased to 7.5 percent,the bond's price would increase/decrease by _____ percent.

• A)-10.08
• B)-9.67
• C)8.45
• D)9.72
• E)10.08

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Definitions:

Equifinality

A principle in systems theory suggesting that a final state can be reached from different initial conditions and through different pathways.

Negative Entropy

A concept in systems theory, indicating systems' tendency towards organization and complexity, contrasting with the concept of entropy in thermodynamics.

Strengths Perspective

A social work practice model that emphasizes an individual's self-determination and strengths rather than focusing solely on their deficits or problems.

Collaboration

The act of working together with one or more people in order to achieve a common goal, often characterized by mutual respect and shared decision-making.