What is the percentage change in a 5-year zero-coupon bond with a duration of 5 years, when interest rates increase from 9% to 10% ? Round to one decimal place as needed. OA. -5% B. -4.7% C. -1% D. -4.5% E. -5.1%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What is the percentage change in a 5-year zero-coupon bond with a duration of 5 years, when interest rates increase from 9% to 10% ? Round to one decimal place as needed.
A. -5%
B. -4.7%
C. -1%
D.
E.
-4.5%
- 5.1%
Transcribed Image Text:What is the percentage change in a 5-year zero-coupon bond with a duration of 5 years, when interest rates increase from 9% to 10% ? Round to one decimal place as needed. A. -5% B. -4.7% C. -1% D. E. -4.5% - 5.1%
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