Multiple Choice
Based on an 18-month, 8 percent (semiannual) coupon Treasury note selling at par. If interest rates increase by 20 basis points (i.e., ΔR = 20 basis points) , use the duration approximation to determine the approximate price change for the Treasury note.
A) $0.000.
B) $0.2775 per $100 face value.
C) $2.775 per $100 face value.
D) $0.2672 per $100 face value.
E) $2.672 per $100 face value.
Correct Answer:
Verified
Correct Answer:
Verified
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