What Is the Percentage Change in a 7-Year Zero-Coupon Bond

question 79

Multiple Choice

What is the percentage change in a 7-year zero-coupon bond with a duration of 7 years,when interest rates increase from 6% to 7%?

• A)-1%
• B)-6.8%
• C)-6.4%
• D)-7%
• E)-6.7%

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Definitions:

Ecological Efficiency

The efficiency with which energy is transferred from one trophic level to the next in an ecosystem, notably low due to the second law of thermodynamics.

Detritivore

Organisms that feed on dead organic matter, playing a crucial role in decomposing and recycling nutrients in ecosystems.

Scavenger

An organism that consumes dead or decaying biomass, contributing to the decomposition process and nutrient cycling in an ecosystem.

Functional Diversity

The range and value of various functional roles performed by species within an ecosystem, contributing to its resilience, productivity, and stability.