What Is the Percentage Price Change for the Bond If

question 102

Multiple Choice

What is the percentage price change for the bond if interest rates decline 50 basis points from the original 5 percent?

• A)-2.106 percent.
• B)+2.579 percent.
• C)+0.000 percent.
• D)+3.739 percent.

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Definitions:

Cognitive Processes

Mental activities involved in acquiring, processing, and storing knowledge.

Literacy

Literacy is the ability to read and write at a level that enables communication, understanding, and participation in society, encompassing a range of skills from basic to advanced levels of comprehension and expression.

Memorialize

To memorialize something is to commemorate or honor it in a lasting way, often through a physical symbol or a solemn ceremony.

Cultural Relativism

A belief that cognitive practices, beliefs, competences, and capacities differ from culture to culture, depending on the tasks and contexts specific to a culture.