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An 8%,15-Year Bond Has a Yield to Maturity of 10

Question 2

Multiple Choice

An 8%,15-year bond has a yield to maturity of 10% and a duration of 8.05 years.If the market yield changes by 25 basis points,how much change will there be in the bond's price?


A) 1.85%
B) 2.01%
C) 3.27%
D) 6.44%
E) none of these

Correct Answer:

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