48. The ________ of a bond price measures the sensitivity of the bond price to a change in the yield to maturity.(a) callability(b) convertibility(c) immutability(d) elasticity Answer: (d)49. Suppose you buy a 25-year pure discount bond with a face value of $1,000 and a yield of 6% per year. A day later market interest rates drop to 5% and so does the yield on your bond. What is the proportional change in the price of your bond?(a) a decrease of 26.74%(b) a decrease of 21.10%(c) an increase of 26.74(d) an increase of 21.20 Answer: (c)50. Suppose you buy a 25-year pure discount bond with a face value of $1,000 and a yield of 6% per year. A day later market interest rates rise to 5% and so does the yield on your bond. What is the elasticity of the bond price to the change in the yield?(a) –0.62%(b) –1.27%(c) –1.60%(d) –2.67% Answer: (c)