A Bond Has a Macaulay's Duration of 26

question 3

Multiple Choice

A bond has a Macaulay's duration of 26.56 years. If rates rise from 6.25% to 6.50%, the bonds price will:

• A) increase by approximately 6.25%.
• B) decrease by approximately 6.25%.
• C) increase by approximately 6.50%.
• D) decrease by approximately 6.50%.
• E) Not enough information is given to answer the question.

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Definitions:

Net Useful Energy

The amount of energy available for use after subtracting the energy lost during generation, transmission, and conversion.

Subsurface Mining

A method of extracting minerals and ores from beneath the earth's surface, as opposed to open-pit or surface mining, often requiring tunnels or shafts.

Disease

A disorder of structure or function in a living organism that typically leads to signs or symptoms and is not a direct result of physical injury.

Groundwater Supplies

Underground sources of fresh water stored in aquifers, crucial for drinking water, irrigation, and industrial uses.