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Examine Example 17-13 Why Are the % Changes Different?
A)They Are Actually the Format

Question 15

Multiple Choice

Examine Example 17-13.The basic data is repeated here,in financial calculator format: FV = 1000,N=30,PMT=50
I/Y Price=PV % change  At 10%$1,000.00 At 8%$1,172.93+17.29% At 12%$862.3513.77%\begin{array} { | l | l | l | } \hline \mathrm { I } / \mathrm { Y } & \text { Price=PV } & \% \text { change } \\\hline \text { At } 10 \% & \$ 1,000.00 & \\\hline \text { At } 8 \% & \$ 1,172.93 & + 17.29 \% \\\hline \text { At } 12 \% & \$ 862.35 & - 13.77 \% \\\hline\end{array} Why are the % changes different?


A) They are actually the same: the table includes an error.
B) The prices shown are rounded to the nearest penny,slightly moving the % changes.
C) The relationship between interest rates and price is not linear.
D) Other factors,including duration and coupon rate,will also affect the relationship between interest rates and prices.

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