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A 12-Year,8 Percent Bond with a YTM of 12 Percent

Question 67

Multiple Choice

A 12-year,8 percent bond with a YTM of 12 percent has a Macaulay duration of 9.5 years.If interest rates decline by 50 basis points,what will be the percent change in price for this bond?


A) +4.48%
B) +4.61%
C) +8.48%
D) +8.96%
E) +17.92%

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