A bond has an annual modified duration of 7.020 and annual convexity of 65.180. If the bonds
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A bond has an annual modified duration of 7.020 and annual convexity of 65.180. If the bond’s yield-to-maturity decreases by 25 basis points, the expected percentage price change is closest to:
A. 1.73%.
B. 1.76%.
C. 1.78%.
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