Multiple Choice
A 30-year zero coupon bond with a face value of $10,000 is currently selling for $2,313.77.Using the bond's modified duration, what is the approximate change in the price of the bond if interest rates rise by 15 basis points?
A) -15.00%
B) -4.29%
C) -0.43%
D) -0.15%
E) Not enough information is given to answer the question.
Correct Answer:
Verified
Correct Answer:
Verified
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