The following information is about current spot rates for Second Duration Savings' assets (loans) and liabilities (CDs). All interest rates are fixed and paid annually.
-If interest rates increase by 20 basis points (i.e. ,$\Delta$R = 20 basis points),use the duration approximation to determine the approximate price change for the Treasury note.
A)$0.000.
B)$0.2775 per $100 face value.
C)$2.775 per $100 face value.
D)$0.2672 per $100 face value.

Question

The following information is about current spot rates for Second Duration Savings' assets (loans) and liabilities (CDs). All interest rates are fixed and paid annually. 
-If interest rates increase by 20 basis points (i.e. ,$\Delta$R = 20 basis points),use the duration approximation to determine the approximate price change for the Treasury note.
A)$0.000. 
B)$0.2775 per $100 face value. 
C)$2.775 per $100 face value. 
D)$0.2672 per $100 face value.

Quizplus · Accepted Answer

The Answer of The following information is about current spot rates for Second Duration Savings' assets (loans) and liabilities (CDs). All interest rates are fixed and paid annually. 
-If interest rates increase by 20 basis points (i.e. ,$\Delta$R = 20 basis points),use the duration approximation to determine the approximate price change for the Treasury note.
A)$0.000. 
B)$0.2775 per $100 face value. 
C)$2.775 per $100 face value. 
D)$0.2672 per $100 face value.

The Following Information Is About Current Spot Rates for Second Δ\DeltaΔ

The Following Information Is About Current Spot Rates for Second $\Delta$