Multiple Choice
What is the percentage price change for the bond if interest rates decline 50 basis points from the original 5 percent?
A) -2.106 percent.
B) +2.579 percent.
C) +0.000 percent.
D) +3.739 percent.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q23: Perfect matching of the maturities of the
Q24: Investing in a zero-coupon asset with a
Q42: The use of duration to predict changes
Q95: For a given change in required yields,
Q97: What is the price of the bond
Q100: The following information is about current spot
Q103: Market value accounting reflects economic reality of
Q104: The following is an FI's balance sheet
Q107: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1314/.jpg" alt=" -Calculate the duration
Q114: Attempts to satisfy the objectives of shareholders