A bond with an 8 percent semi-annual coupon and 10-year maturity is currently priced at $904.52 to yield 9.5 percent. If the yield declines to 9 percent, the bond’s price will increase to $934.96, and if the yield increases to 10 percent, the bond’s price will decrease to $875.38. Estimate the percentage price change for a 100 basis point change in rates.（）

单项选择题The arbitrage-free bond valuation approach can best be described as the:（）

A. use of a single discount factor.
B. use of a series of spot interest rates that reflect the current term structure.
C. arithmetic average of the spot interest rates.

单项选择题An investor has the following options available to them: They can buy a 10% semi annual coupon, 10 - year bond for $1000. The coupons can be reinvested at 12%. They estimate the bond will be sold in 3 years $1050. Based on this information, what would be the average annual rate of return over the 3 years（）

A. 11.5%.
B. 13.5%.
C. 10.0%.