Answer: 0.103

## Explanation Key rate '01 (also known as key rate DV01) measures the dollar change in a bond's price for a 1 basis point (0.01%) change in a specific key rate point on the yield curve, while keeping other rates constant. For a 30-year shift, we're looking at the sensitivity to changes in the 30-year point on the yield curve. Among the given options: - **A. -0.058**: Negative value would indicate price decreases with rate increases - **B. 0.024**: Relatively small positive sensitivity - **C. 0.103**: Moderate positive sensitivity - **D. 0.158**: Larger positive sensitivity **Correct Answer: C (0.103)** This value represents the dollar change in the bond's price for a 1 basis point increase in the 30-year rate. The positive value indicates that as the 30-year rate increases by 1 basis point, the bond's price increases by approximately $0.103 per $100 face value. This could occur in certain yield curve scenarios where the bond's cash flows are structured such that they benefit from increases in long-term rates.

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