Multiple Choice
If a bond's volatility is 5.0 percent and its yield to maturity changes by 0.5 percent (points) , then the price of the bond
A) changes by 5.0 percent.
B) changes by 2.5 percent.
C) changes by 7.5 percent.
D) will not change.
Correct Answer:
Verified
Correct Answer:
Verified
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