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A 7%, 14-Year Bond Has a Yield to Maturity of 4.4

Question 8

Multiple Choice

A 7%, 14-year bond has a yield to maturity of 4.4% and duration of 8.5 years. If the market yield changes by 54 basis points, how much change will there be in the bond's price?


A) 1.85%
B) 2.91%
C) 4.40%
D) 6.44%

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