An 8%,15-Year Bond Has a Yield to Maturity of 10

question 40

Multiple Choice

An 8%,15-year bond has a yield to maturity of 10% and duration of 8.05 years.If the market yield changes by 25 basis points,how much change will there be in the bond's price?

• A)1.85%
• B)2.01%
• C)3.27%
• D)6.44%
• E)none of the above

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Definitions:

Vertical Control

A management approach where decision-making and directives flow from the top levels of the organizational hierarchy down to the lower levels.

Lateral Command

A form of organizational communication that occurs among colleagues at the same hierarchical level, without involving higher management.

Supply-Chain Manager

A professional responsible for overseeing and managing a company's end-to-end supply chain processes, from procurement of materials to delivery of final products.

Boundary-Spanning

Activities performed by individuals or groups that involve interactions outside the immediate organization to obtain information or resources.