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Consider a Bond with a Duration of 7 Years Having

Question 104

Multiple Choice

Consider a bond with a duration of 7 years having a yield to maturity of 7 percent, and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?


A) 3.62 percent
B) 3.45 percent
C) -3.38 percent
D) 3.38 percent
E) -3.62 percent

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