Question: A bond with an embedded put option has a modified duration of 8, an effective duration of 7 and a convexity of 64.5. If interest

A bond with an embedded put option has a modified duration of 8, an effective duration of 7 and a convexity of 64.5. If interest rates rise by 25 basis points, the bonds price will change by approximately: Question 11Answer a. 2.03%. b. 1.71%. c. 1.96% d. 2.28%

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