17-64 What Is the Impact of a 50 Basis Point

question 44

Multiple Choice

17-64 What is the impact of a 50 basis point increase in interest rates on the net asset value of an open?end bond mutual fund holding a seven year,$100 million par value 7 percent annual coupon bond? The fund has 10 million shares.

• A)An increase of $0.24 per share.
• B)A decrease of $0.265 per share.
• C)An increase of $0.05 per share.
• D)A decrease of $0.05 per share.
• E)An increase of $0.265 per share.

---

Definitions:

Schizophrenia Spectrum Disorders

A range of disorders characterized by symptoms such as delusions, hallucinations, disorganized speech, and cognitive impairment.

Personality Disorders

Mental health conditions characterized by patterns of thought, feeling, and behavior that are significantly different from what is considered normal, causing distress or impaired functioning.

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Schizophrenia

A psychological condition marked by altered thought processes, perceptions, emotional responses, communication abilities, self-identity, and actions.