9-81 What Is the Percentage Price Change for the Bond

question 94

Multiple Choice

9-81 What is the percentage price change for the bond if interest rates decline 50 basis points from the original 5 percent?

• A)-2.106 percent.
• B)+2.579 percent.
• C)+0.000 percent.
• D)+3.739 percent.
• E)+2.444 percent.

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Definitions:

Continuous Random Variable

A type of random variable that can take an infinite number of values within a given range.

Continuous Random Variable

A variable that can take on an infinite number of values within a given range, representing quantities that can be subdivided indefinitely.

Probability Function

A mathematical function that determines the likelihood of various potential outcomes for an experiment.

Interval

A range of numbers between two specified limits, often used in the context of confidence intervals in statistics.