A Bond Has a Macaulay Duration of 5

question 25

Multiple Choice

A bond has a Macaulay duration of 5.75 years. What will be the percentage change in the bond price if the yield to maturity increases from 6 percent to 6.4 percent?

• A) -2.23 percent
• B) -2.41 percent
• C) -3.30 percent
• D) -3.38 percent
• E) -3.46 percent

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Future Value

The value of an investment at a specified point in the future, accounting for factors like interest rates and compounding.

Payment

The transfer of money, or its equivalent, from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Account Earning

The income generated from an investment or the revenue accrued from a bank account over a specific period.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.