Question: Is 3.5 correct? Given a duration of 7.5, how does the price of a bond change when interest rates decline by 0.5%? It rises by

Is 3.5 correct?

Given a duration of 7.5, how does the price of a bond change when interest rates decline by 0.5%? It rises by 3.75% It rises by 7.5% It rises by 5.625%

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