Par Value Bond GE Has a Modified Duration of 11

question 54

Multiple Choice

Par value bond GE has a modified duration of 11.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 $55.
• B)If the market yield increases by 1% the bond's price will increase by $55.
• C)If the market yield increases by 1% the bond's price will decrease by $110.
• D)If the market yield increases by 1% the bond's price will increase by $110.
• E)None of the above.

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Definitions:

Racial Patterning

The organization or distribution of racial groups within a society, which can influence various socio-economic outcomes.

Health Status

An individual's overall condition of body and mind, considering the presence or absence of illness, injury, or impairment.

Racial Groups

Categories of humans based on physical characteristics, ancestry, historical affiliation, or shared culture.

Socioeconomic Factors

Aspects related to an individual's economic and social position that influence their health and access to resources.