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The Amount That the Price of Bond "B" Will Change

question 7

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The amount that the price of bond "B" will change if its yield to maturity increases from 7% to 8% is closest to:


Definitions:

Fiber-Optic Tube

A flexible, thin tube made of glass or plastic fibers used to transmit light signals over long distances with minimal loss of strength.

Stomach

A muscular organ in the digestive system that processes food by secreting acid and enzymes.

Patch Test

An allergy test in which a gauze patch soaked with a suspected allergen is taped onto the skin with nonallergenic tape; used to discover the cause of contact dermatitis.

Suspected Allergen

A substance believed to cause an allergic reaction but has not yet been medically confirmed as an allergen for an individual.

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