Which one of the following par value 12% coupon bonds experiences a price change of $23 when the market yield changes by 50 basis points?
A) The bond with a duration of 6 years.
B) The bond with a duration of 5 years.
C) The bond with a duration of 2.7 years.
D) The bond with a duration of 5.15 years.
E) None of the above.
Correct Answer:
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Q23: Par value bond XYZ has a modified
Q24: The two components of interest-rate risk are
A)price
Q25: Which one of the following statements is
Q27: Duration
A)assesses the time element of bonds in
Q29: Duration measures
A)weighted average time until a bond's
Q30: You have an obligation to pay $1,488
Q31: An 8%,15-year bond has a yield to
Q32: Which one of the following statements is
Q33: The duration of a coupon bond
A)does not
Q35: Which of the following bonds has the
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