A Bond Has a Macaulay Duration of 6

question 53

Multiple Choice

A bond has a Macaulay duration of 6.87 years. What will be the percentage change in the bond price if the yield-to-maturity increases from 8% to 8.5%?

• A) -2.94%
• B) -3.65%
• C) -3.93%
• D) -4.32%
• E) -3.30%

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Definitions:

Malaria

A life-threatening disease transmitted by mosquitoes, characterized by fever, chills, and anemia.

Viral Fever

A fever caused by underlying viral infections.

Common Cold

A widely prevalent, contagious viral infection of the upper respiratory tract, resulting in symptoms like sneezing, coughing, sore throat, and runny nose.

Innate Immune System

The non-specific first line of defense against pathogens, consisting of physical barriers, immune cells, and proteins.