A 9-year bond has a yield to maturity of 10 percent and a modified duration of 6.54
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A 9-year bond has a yield to maturity of 10 percent and a modified duration of 6.54 years. If the market yield changes by 50 basis points, what is the change in the bond’s price?
a. 3.27 percent
b. 3.66 percent
c. 6.54 percent
d. 7.21 percent.
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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