Answer: Increase of 6 bps

The 10 bp shock to the 10-year yield is supposed to decline linearly to zero for the 20-year yield. Thus, the shock decreases by 1 bp per year and will result in an increase of 6 bps for the 14-year yield. **Detailed Explanation:** - The shock starts at 10 bps at the 10-year yield - The shock decreases linearly to 0 bps at the 20-year yield - The total time span is 10 years (from year 10 to year 20) - The linear decrease rate is: 10 bps / 10 years = 1 bp decrease per year - For the 14-year yield, which is 4 years after the 10-year point: 10 bps - (4 years × 1 bp/year) = 10 - 4 = 6 bps Therefore, the 14-year yield increases by 6 bps.

Author: LeetQuiz Editorial Team