单选题

A bond with a par value of $100 matures in 10 years with a coupon of 4.5%, paid semiannually; is priced to yield 5.83%; and has a modified duration of 7.81. If the yield of the bond declines by 0.25%, the approximate percentage price change for the bond is closest to:

【正确答案】 B
【答案解析】

B is correct. Approximate percentage price change = -(7.81 × (-0.0025)) = 0.01953 or 1.95%.