Question: Consider the following bond Face Value = $ 1 , 0 0 0 Bond Price = $ 1 , 0 0 0 YTM = 4

Consider the following bond
Face Value = $1,000
Bond Price = $1,000
YTM =4.0%
Duration =3.78
You anticipate interest will rise to 5%. Using the bond's duration, what is the forecasted dollar value change in the price of the bond?

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