Assume You Currently Hold a One-Year Bond with a Face $-0.001$

Assume you currently hold a one-year bond with a face value of $100 000,which has a coupon rate of 8% p.a.If the yield changes from 12% p.a.to 14% p.a. ,what is the change in the duration of the bond?

A) $-0.001$
B) $0.001$
C) $-0.010$
D) $0.004$

Correct Answer:

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