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Consider a Bond with a Duration of 6 Years Having

Question 16

Multiple Choice

Consider a bond with a duration of 6 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) 2.88%
B) 3.45%
C) -3.89%
D) -3.45%
E) -2.88%

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