9-104 Calculate the Percentage Change in This Bond's Price If

question 103

Multiple Choice

9-104 Calculate the percentage change in this bond's price if interest rates on comparable risk securities increase to 11 percent.Use the duration valuation equation.

• A)+4.25 percent.
• B)-4.25 percent.
• C)+8.58 percent.
• D)-3.93 percent.
• E)-3.84 percent.

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Definitions:

Cost Of Goods Sold

An accounting term for the direct costs attributable to the production of the goods sold by a company.

Inventory Items Sold

The total number of product units a company has sold to its customers during a specific period.

Materials Cost

The total expense incurred for the materials that are used in the production of goods or services.

Purchase Order

A document generated by a buyer and sent to a seller specifying products or services to be purchased.