问题
单项选择题
A bond portfolio manager owns $ 5 million par valfie of a noncallable bond issue. The duration of the bonds is 5.6 and the current market value of the bonds is $5125000. If yield decline by 25 basis points, the approximate new price of the bonds after the decline in yield will be closest to:（）
A. $5053250.
B. $5070000.
C. $5196750.
答案
参考答案：C
解析：
Duration of 5.6 means that the approximate percentage price change for a 100 basis point change in yield will be 5.6%. A 25 basis point change would be 5.6/4=1.4%. The approximate new price would be $5125000×1.014=$5196750.