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SunTrust Bank has eight-year zero-coupon bonds with a total face value of $34 million. The current market yield on the bonds is 7.25 percent. What

SunTrust Bank has eight-year zero-coupon bonds with a total face value of $34 million. The current market yield on the bonds is 7.25 percent. What is the price volatility if the maximum potential adverse move in yields is estimated at 105 basis points?

Question 4 options:

A)

-3.45 percent.

B)

-7.83 percent.

C)

-4.53 percent.

D)

-8.31 percent.

E)

-9.04 percent.

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