Change in interest rate measured in percentage for given interest rate change is classified as

A. premium yield

B. elasticity

C. duration

D. maturity yield

Answer: Option B

Solution(By Examveda Team)

Change in interest rate measured in percentage for given interest rate change is classified as elasticity. Elasticity is a measure of a variable's sensitivity to a change in another variable. In business and economics, elasticity refers the degree to which individuals, consumers or producers change their demand or the amount supplied in response to price or income changes.