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.

Name: 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.
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Question

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The Answer is B

If a Bond's Volatility Is 5