A 15-year zero coupon bond has a face value of $1,000. The current 15 year spot rate

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A 15-year zero coupon bond has a face value of $1,000. The current 15 year spot rate is 8%. Using the bond's modified duration, what is the percentage change in the price of the bond if interest rates rise by 50 basis points?

Select one:

a. -6.94%

b. 6.94%

c. 4.69%

d. -4.69%

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Database Systems Design Implementation and Management

ISBN: 978-1285196145

11th edition

Authors: Carlos Coronel, Steven Morris

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Posted Date: Jan 07, 2021 01:33 PM

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A 15-year zero coupon bond has a face value of $1,000. The current 15 year spot rate

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Since the bond is a Macaulay Duration ... View the full answer

Database Systems Design Implementation and Management

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