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A Bond Has a Modified Duration of 4

question 99

Multiple Choice

A bond has a modified duration of 4.6 years. The yield to maturity is 8.9 percent. If interest rates decline by 25 basis points, the bond's price will ________.


Definitions:

Expected Activities

The projected activities or operations a business plans to undertake, usually within a specific timeframe, often related to budgeting and planning.

Operating Budgets

Operating budgets are detailed projections that outline the expected income and expenditures related to the day-to-day operations of a business for a specific period.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping organizations to manage cash flow and assess liquidity needs.

Sales Budget

An estimate of future sales, often broken down into volume and price, that serves as a guide for a company's sales strategies and financial planning.

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