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Suppose That the Required Yield on a 6% Coupon, 12-Year

Question 15

Multiple Choice

Suppose that the required yield on a 6% coupon, 12-year bond increases from 10% to 11% (0.01 in decimal form) . If this bond's duration is 8.96, what is the approximate percentage change in price?


A) -4.48%
B) +7.48%
C) -8.96%
D) +9.86%

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