Multiple Choice
A bond is selling in the market for $1,100 and has a duration of 4.5 years.Market interest rates are 5 percent and are expected to increase to 7 percent in the near future.What will this bond's price be after the change in market interest rates?
A) $1,006
B) $1,194
C) $1,122
D) $1,078
E) $1,100
Correct Answer:
Verified
Correct Answer:
Verified
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