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What Is the Percentage Change in a 5-Year Zero-Coupon Bond

Question 18

Multiple Choice

What is the percentage change in a 5-year zero-coupon bond with a duration of 5 years,when interest rates increase from 9% to 10%?

A) -1%
B) -5.1%
C) -4.7%
D) -5%
E) -4.5%

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