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Consider a Bond with a Duration of 8 Years Having

Question 101

Multiple Choice

Consider a bond with a duration of 8 years having a yield to maturity of 8% and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?


A) 3.85%
B) 3.45%
C) -4.02%
D) -3.45%
E) -3.85%

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