Question
Bond price is $1,100 and a modified duration is 12. Which one of the following statements regarding the bond is true ? A. If the
- Bond price is $1,100 and a modified duration is 12. Which one of the following statements regarding the bond is true?
| A. | If the market yield increases by 1%, the bond's price will decrease by $132. | |
| B. | If the market yield increases by 1%, the bond's price will increase by $132. | |
| C. | If the market yield increases by 1%, the bond's price will decrease by $120. | |
| D. | If the market yield increases by 1%, the bond's price will increase by $120. |
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
