单选题

A bond with a par value of $100 matures in 10 years with a coupon of 4.5% paid semiannually; it is priced to yield 5.83% and has a modified duration of 7.81. If the yield of the bond declines by0.25%, the approximate percentage price change for the bond is closest to:

【正确答案】 A
【答案解析】

Approximate percentage price change =-[7.81 × (-0.0025)] = 0.01953 or 1.95%.