Par Value Bond XYZ Has a Modified Duration of 6

question 84

Multiple Choice

Par value bond XYZ has a modified duration of 6.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 $60.
• B)If the market yield increases by 1% the bond's price will increase by $50.
• C)If the market yield increases by 1% the bond's price will decrease by $50.
• D)If the market yield increases by 1% the bond's price will increase by $60.
• E)None of the above.

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Definitions:

Medication

Substances used for medical treatment, especially for the treatment or prevention of disease.

Milieu Approach

A therapeutic method focusing on the use of social and physical environments to help individuals improve their behavior and psychological condition.

24-hour Supervision

Constant monitoring or presence of a caregiver or professional to ensure safety and provide assistance around the clock, often required for individuals with severe health conditions or disabilities.

Community Setting

A social environment where individuals live, interact, and engage in daily activities outside of institutional or hospital-based settings, often focusing on the broader social and community context.