The Price of a Bond Decreases by 1

question 98

Multiple Choice

The price of a bond decreases by 1.84% in response to an increase in the yield to maturity from 6.8% to 7.2%. What is the Macaulay duration of the bond?

• A) 5.87 years
• B) 4.24 years
• C) 4.89 years
• D) 4.76 years
• E) 3.41 years

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Definitions:

Metanephridia

The excretory organs of annelids and mollusks; each consists of a tubule open at both ends; at one end a ciliated funnel opens into the coelom, and the other end opens to the outside of the body.

Osmoregulation

The process by which living organisms regulate the concentration of water and solutes within their bodies to maintain homeostasis.

False Statement

A claim or assertion that is not in accordance with facts or truth.

Malpighian Tubules

Excretory structures that remove wastes from the hemolymph (blood) of insects and arachnids, playing a role in osmoregulation.