9-91 If Interest Rates Increase by 20 Basis Points (I $\Delta$

question 62

Multiple Choice

9-91 If interest rates increase by 20 basis points (i.e., $\Delta$ R = 20 basis points) ,use the duration approximation to determine the approximate price change.

• A)$0.000.
• B)$0.2775 per $100 face value.
• C)$2.775 per $100 face value.
• D)$0.2672 per $100 face value.
• E)$2.672 per $100 face value.

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Definitions:

Collude

To secretly agree with others, typically competitors, to cooperate for an illegal or deceitful purpose, such as fixing prices.

Cheating

Dishonest behavior or attempting to gain an unfair advantage in a competitive situation.

Marginal Cost

The advancement in overall fees incurred by producing an extra unit of a good or service.

Market Demand Curve

A graphical representation that shows the quantity of goods that consumers in a market are willing to buy at different prices.