Which of the following statements about duration is TRU-找考题网

Which of the following statements about duration is TRUE（）

A. The result of the formula for effective duration is for a 0.01% change in interest rates.
B. A bond’s percentage change in price and dollar change in price are both tied to the underlying price volatility.
C. The formula for effective duration is: (price when yields fall - price when yields rise)/(initial price × change in yield expressed as a decimal).

单项选择题Cure All General Hospital has been forced to fife for bankruptcy protection. The company managing the hospital has been allowed to reorganize under the name United Hospital of Hope. The courts have specified that a new indenture should be written to accompany a planned new bond issue. The issue would have ten years to maturity and carry a 10% coupon that would be paid annually. The new agreement would relieve the company of the obligation to make interest payments during the first five years after the bond is issued. For the remaining five years, regular interest payments would resume. Finally, at maturity, the principal ($1000) plus the interest that was not paid during the first five years would be paid. However, no additional interest would be payable on the deferred interest. If the bond’s YTM is 10%, its value is closest to:（）