Consider a Bond with a Duration of 8 Years Having

question 68

Multiple Choice

Consider a bond with a duration of 8 years having a yield to maturity of 8% and interest rates are expected to rise by 50 basis points.What is the percentage change in the price of the bond?

• A) 3.85%
• B) 3.45%
• C) -4.02%
• D) -3.45%
• E) -3.85%

---

Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the balance of trade.

1930s

A decade marked by the Great Depression, significant economic hardship, unemployment, and social changes worldwide.

1950s

A decade marked by post-World War II recovery, economic prosperity in many countries, and significant socio-cultural developments.

1970s

A decade known for major economic changes, including shifts in political ideologies, oil crises, and the movement towards globalization.