Multiple Choice
An annual payment bond has a 9% 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%
B) 33.33%
C) 1.95%
D) -1.95%
E) 2.75% -12 (-0.0025/1.09)
Correct Answer:
Verified
Correct Answer:
Verified
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