Which of the below statements is TRUE?
A) Fifty basis points are equal to one-fifth percentage point, and a yield change from 9% to 9.2% represents a 50 basis point change in yield.
B) One basis point is defined as 0.0001, or equivalently, 0.01%.
C) A yield change from 7% to 7.5% is a 0.50 basis point change.
D) A yield change from 6% to 8.35% is a 2,350 basis point change in yield.
Correct Answer:
Verified
Q35: The appropriate _ can often be approximated
Q36: The price of a complex asset is
Q37: A financial asset has many properties, and
Q38: Tax rates are constant from year to
Q39: Suppose that the required yield on a
Q41: Explain the difference between modified duration and
Q42: An asset's maturity is a factor that
Q43: It is important to be able to
Q44: For financial assets traded with market makers,
Q45: Suppose that you have a bond issued
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents