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Consider a Bond That Pays Annually an 8% Coupon with 20

Question 52

Multiple Choice

Consider a bond that pays annually an 8% coupon with 20 years to maturity.The percentage change in the price of the bond if its yield to maturity increases from 5% to 7% is closest to:


A) 22%
B) 24%
C) -22%
D) -24%

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