A Bond Has a Modified Duration of 5

question 32

Multiple Choice

A bond has a modified duration of 5.87 years,a par value of $1,000,and a current market value of $1,008.What is the dollar value of an 01?

• A) $0.0698
• B) $0.0700
• C) $0.5917
• D) $0.6401
• E) $0.7023

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Definitions:

Psychological Disorder

A mental disorder characterized by patterns of thought, emotion, or behavior that are deviant, distressing, and dysfunctional.

Dysfunctional

Refers to behaviors or systems that are impaired or not operating normally, often negatively affecting the entity's performance or well-being.

Medical Model

A framework that views psychological disorders as illnesses that have underlying biological causes and can be treated through medical intervention.

Alcohol Use Disorder

The state of being unable to reduce or cease alcohol use, even when it leads to negative consequences in one’s social life, job, or health.