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

question 54

Multiple Choice

The amount that the price of bond "D" will change if its yield to maturity increases from 8% to 9% is closest to:

• A)-$36
• B)-$39
• C)$36
• D)$9

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Definitions:

Planetary Gearsets

A gear system consisting of one or more outer gears (planet gears) revolving around a central (sun) gear, used in transmissions to offer multiple gear ratios.

Caterpillar CX

A model or series of transmissions or engines produced by Caterpillar, designed for use in commercial vehicles and equipment.

Minimum Number

The least or smallest count or quantity achievable or required under specific conditions.

Planetary Gearsets

A gear system consisting of one or more outer gears revolving around a central (sun) gear, commonly used in automatic transmissions.