nsider the following two Treasury securities: Bond Price Modified duration (years) A $100 6 B $80 7   For a 25 basis-point change in interest rates, what is the percentage change in price for Bond A?   A. -2.00%   B. -1.50%   C. 3.00%   D. 3.50%

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Consider the following two Treasury securities:

Bond

Price

Modified duration (years)

A

$100

6

B

$80

7

 

For a 25 basis-point change in interest rates, what is the percentage change in price for Bond A?

  A.

-2.00%

  B.

-1.50%

  C.

3.00%

  D.

3.50%

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