Because of a change in the required rate of return from 11 percent to 13 percent, the bond price of a zero-coupon bond will fall from $1,000 to $860. Thus, the bond price elasticity for this bond is
A) 0.77.
B) -0.77.
C) -0.90.
D) -1.06.
E) none of the above.
Correct Answer:
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