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 $\times$ 0.00165 = 0.40%.
B) -2.45 $\times$ 0.00165 = -0.40%.
C) 2.45 $\times$ 0.0165 = 4.04%.
D) -2.45 $\times$ 0.0165 = -4.04%.

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The Answer of 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 $\times$ 0.00165 = 0.40%.
B) -2.45 $\times$ 0.00165 = -0.40%.
C) 2.45 $\times$ 0.0165 = 4.04%.
D) -2.45 $\times$ 0.0165 = -4.04%.

Assume That the Modified Duration of a Bond Is 2 ×\times×

Assume That the Modified Duration of a Bond Is 2 $\times$