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.

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Definitions:

Deinstitutionalization Programs

Initiatives aimed at relocating individuals with mental illness from psychiatric hospitals or long-term care facilities to community-based settings, emphasizing outpatient care and support.

Dropout Rates

The percentage of individuals who leave an educational institution without completing their course of study.

Transition

The process or a period of changing from one state or condition to another in any aspect of life or environment.

Positive Psychology

A branch of psychology focused on the study of positive emotions, strengths-based character, and healthy psychological functioning.