Q 9

A 20-year zero coupon bond with a face value of $1,000 is currently selling for $214.55.Using the bond's modified duration, what is the approximate change in the price of the bond if interest rates rise by 25 basis points? A)-49.63% B)-46.39% C)-4.96% D)-4.63% E)Not enough information is given to answer the question.

Multiple Choice