A Bond Has a Macaulay's Duration of 10

question 7

Multiple Choice

A bond has a Macaulay's duration of 10.7 years. If rates fall from 7% to 6%, the bonds price will:

• A) increase by approximately 1%.
• B) decrease by approximately 1%.
• C) increase by approximately 10%.
• D) decrease by approximately 10%.
• E) Not enough information is given to answer the question.

---

Definitions:

Stimulant

A substance that raises levels of physiological or nervous activity in the body, typically used to increase alertness, attention, and energy.

Behavior Addiction

A form of addiction involving a compulsion to engage in a rewarding non-drug-related behavior despite adverse consequences.

Internet Gaming Disorder

A condition recognized by excessive and compulsive engagement in video games, leading to significant impairment or distress.

Alcohol Use Disorder

An illness defined by the inability to halt or regulate drinking habits, even when faced with detrimental outcomes in social settings, the workplace, or health.