You Own a $15 Million Bond Portfolio with a Modified

question 58

Multiple Choice

You own a $15 million bond portfolio with a modified duration of 11 years. Interest rates are expected to increase by 5 basis points, or 0.05%. What is the price value of a basis point?

• A) $10,400
• B) $14,300
• C) $16,500
• D) $21,300

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Definitions:

Emotional Flooding

A state where an individual feels overwhelmed by emotions to the point where it becomes difficult to think clearly or react rationally.

Genuineness

In therapeutic relationships, it refers to the therapist's ability to be authentic and transparent with their feelings and thoughts.

Unconditional Positive Regard

A therapeutic stance characterized by accepting and supporting clients without judgment, a core concept in person-centered therapy.

Conditions of Worth

Standards that individuals believe they must meet to earn positive regard and acceptance from others.