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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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 08, 2023 04:16 AM

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A bond has an annual modified duration of 7.020 and annual convexity of 65.180. If the bonds

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Fixed Income Analysis

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