Assume that the modified duration of a bond is 2.45 years and that the potential adverse move in yield is 16.5 basis points. What is the bond's price volatility (round to two decimals)? A. -2.45 ´...

Assume that the modified duration of a bond is 2.45 years and that the potential adverse move in yield is 16.5 basis points. What is the bond's price volatility (round to two decimals)?

A.

-2.45 ´ 0.0165 = -4.04%.

B.

2.45 X 0.00165 = 0.40%.

C.

-2.45 ´ 0.00165 = -0.40%.

D.

2.45 ´ 0.0165 = 4.04%.