C12 Exam Questions and Answers

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NEW QUESTION: 1
For an asset with duration of 8.65, a 100 basis point increase in required return will:
A. cause the price of the asset to
decrease by approximately 8.65%
B. cause the price of the asset to increase by approximately 8.65%
C. cause the price of the asset to decrease by approximately 4.33%
C cause the price of the asset to decrease by approximately 8 65%
Answer: A
Explanation:
There is an inverse relationship between the price of a bond and the bond's required return.
Duration is an estimate of the percentage change in the bond's price in response to a 100 basis point change in required return.


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PDF Format eBook

PDF C12 exam questions and answers can be run on any portable device or on your desktop computer. This C12 exam questions and answers PDF provides a complete study material that you can open at any given time when you want to prepare for your C12 exam. It’s structured in such a way so you can easily access the page you need with a single click. You can prepare for this assessment anywhere you want, thanks to the portability of the wonderful C12 PDF exam questions and answers.

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