Question: 1)Suppose a bond's YTM rises by a basis point. Which of the following is used as an approximate measure of the resulting dollar change in

1)Suppose a bond's YTM rises by a basis point. Which of the following is used as an approximate measure of the resulting dollar change in the bond's price?

a. MacD

b.ModB

c. DV01

d. Bond 007

2) A 7-year zero-coupon bond has a face value of $1,000. If its YTM changes from 3.7% to 4.9%, what is the resulting percentage change in its price? Use the price determined from the first yield, 3.7%, as the base in the percentage calculation. Round to the nearest hundredth of a percent. (e.g., 4.32% = 4.32). [Hint: Percent price change = ((P2-P1)/P1)x100. If the price dropped, enter a negative number]

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