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A Bond Has a Modified Duration of 7

Question 91

Multiple Choice

A bond has a modified duration of 7.22 and a yield to maturity of 8.1 percent.If interest rates increase by 75 basis points,the bond's price will decrease by ________ percent.


A) -0.46
B) -0.54
C) -4.60
D) -5.42
E) -6.18

Correct Answer:

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