Multiple Choice
An annual payment bond has a 9 percent required return. Interest rates are projected to fall 25 basis points. The bond's duration is 12 years. What is the predicted price change?
A) −2.75 percent
B) 33.33 percent
C) 1.95 percent
D) −1.95 percent
E) 2.75 percent
Correct Answer:
Verified
Correct Answer:
Verified
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