Par Value Bond F Has a Modified Duration of 9

question 5

Multiple Choice

Par value bond F has a modified duration of 9.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 $90.
• B)If the market yield increases by 1% the bond's price will increase by $90.
• C)If the market yield increases by 1% the bond's price will decrease by $60.
• D)If the market yield decreases by 1% the bond's price will increase by $60.
• E)None of the above.

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