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Consider a Bond That Pays Annually an 8% Coupon with 20

Question 54

Multiple Choice

Consider a bond that pays annually an 8% coupon with 20 years to maturity.The amount that the price of the bond will change if its yield to maturity increases from 5% to 7% is closest to:


A) -$270.
B) -$225.
C) -$310.
D) -$250.

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