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:

Symmetric

A characteristic of an object or a distribution in which it is identical in shape on both sides of a central axis.

Skewed

Describing a distribution that is not symmetrical, where one tail is longer or fatter than the other, indicating a deviation from the normal distribution.

Median Number

The middle value in a list of numbers, which separates the higher half from the lower half.

Mean Salary

The average income of individuals in a specific group, taking the sum of all salaries and dividing by the number of individuals.