Multiple Choice
Assume that the modified duration of a bond is 2.45 years and that the potential adverse move in yield is 16.5 basis points.What is the bond's price volatility (round to two decimals) ?
A) 2.45 * 0.00165 = 0.40%
B) -2.45 * 0.00165 = -0.40%
C) 2.45 * 0.0165 = 4.04%
D) -2.45 * 0.0165 = -4.04%
Correct Answer:
Verified
Correct Answer:
Verified
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