A Bond Has a Modified Duration of 7

question 48

Multiple Choice

A bond has a modified duration of 7.22 and a yield to maturity of 8.9 percent. If interest rates increase by 75 basis points, the bond's price will decrease by _____ percent.

• A) -0.46
• B) -0.54
• C) -4.60
• D) -5.42
• E) -6.18

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Definitions:

4- to 6-Year-Olds

A developmental stage in early childhood characterized by significant growth in language, motor skills, and social interaction.

7- to 10-Year-Olds

This age range corresponds to the developmental stage often associated with increased cognitive and social abilities, including improved problem-solving and understanding of relationships.

Metacognition

The awareness and understanding of one's own thought processes.

Cognitive Development

The process by which individuals acquire and evolve in their problem-solving abilities, memory, perception, and language.