Question

A bond is selling in the market for $1,100 and has a duration of 4.5 years. Market interest rates are 5 percent and are expected to increase to 7 percent in the near future. What will this bond's price be after the change in market interest rates?

A. $1,006

B. $1,194

C. $1,122

D. $1,078

E. $1,100

Answer

This answer is hidden. It contains 1 characters.