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Estimate the Percentage Price Change for a 5-Year $1,000 Par

Question 25

Multiple Choice

Estimate the percentage price change for a 5-year $1,000 par value bond,with a 6% coupon,if the yield rises from 8% to 8.5%.Interest is paid semiannually.


A) 2.1%
B) -2.1%
C) 4.4%
D) -4.4%
E) None of the above

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