The Price of a Bond Decreased by 1

question 18

Multiple Choice

The price of a bond decreased by 1.45 percent in response to an increase in the yield to maturity from 7.2 to 7.6 percent.What is the bond's Macaulay duration?

• A) 3.39 years
• B) 3.76 years
• C) 3.92 years
• D) 4.04 years
• E) 4.16 years

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Definitions:

Vigour

A physical or mental strength, energy, or forcefulness, often characterized by a lively or robust quality.

Dedication

A strong commitment to a task or purpose, often demonstrated through persistent effort and focus.

Psychological Capital

An individual's positive psychological state, characterized by self-efficacy, optimism, hope, and resilience, which enhances performance and well-being.

Vigour

The physical strength, energy, and enthusiasm displayed by individuals, often associated with high levels of activity and productivity.