Question: Question 9 If modified duration = 3 and interest rates decrease by .4% then the bond price would... O increase by 7.5% O decrease by

Question 9 If modified duration = 3 and interest rates decrease

Question 9 If modified duration = 3 and interest rates decrease by .4% then the bond price would... O increase by 7.5% O decrease by 1.2% increase by 1.2% Question 10 Which of the following is true? 4 pts Bond prices move in the same direction as interest rates 4 pts The higher the coupon rate on a bond, the more sensitive the price is to a change in interest rates. The longer the maturity of a bond, the more sensitive the price is to a change in interest rates

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