Carter National Bank holds $15 million in government bonds having a duration of 12 years. If interest

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Carter National Bank holds $15 million in government bonds having a duration of 12 years. If interest rates suddenly rise from 6 percent to 7 percent, what percentage change should occur in the bonds’ market price?

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Bank Management and Financial Services

ISBN: 978-0078034671

9th edition

Authors: Peter Rose, Sylvia Hudgins

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Question Posted: Oct 31, 2014 10:33 AM

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Carter National Bank holds $15 million in government bonds having a duration of 12 years. If interest

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