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Consider a Bond with a Duration of 7 Years Having

Question 85

Multiple Choice

Consider a bond with a duration of 7 years having a yield to maturity of 7% and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?


A) 3.62%
B) 3.45%
C) -3.38%
D) 3.38%
E) -3.62%

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