Multiple Choice
A bond has a Macaulay's duration of 10.7 years. If rates fall from 7% to 6%, the bonds price will:
A) increase by approximately 1%.
B) decrease by approximately 1%.
C) increase by approximately 10%.
D) decrease by approximately 10%.
E) Not enough information is given to answer the question.
Correct Answer:
Verified
Correct Answer:
Verified
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