FINC 600 Week 1 Practice Quiz APU | Page 6

D. None of the above
Feedback: Annual interest payment = 1000( 0.08) = $ 80;
Semi-annual payment = 80 / 2 = $ 40
Question 15 of 15
A bond with duration of 10 years has yield to maturity of 10 %. This bond ' s volatility is:
A. 9.09 %
B. 6.8 %
C. 14.6 %
D. 6.0 %
​Feedback: Volatility(%) = Duration /( 1 + yield) = 10 / 1.1 = 9.09 %