Question: Question 7 0.5 pts A bond has an annual modified duration of 7.14 and an annual convexity of 66.2. The bond's yield to maturity is

Question 7 0.5 pts A bond has an annual modified duration of 7.14 and an annual convexity of 66.2. The bond's yield to maturity is expected to increase by 50 basis points. The expected percentage change is closest to: -3.57% O -3.49% O -3.4% D Question 8 0.5 pts An investor purchases an annual coupon bond with a 6% coupon rate and exactly 20 years remaining until maturity. The investors investment horizon is 8 years. The approximate modified duration of the bond is is 11.47 years. The duration gap at the time of purchase is closest to: O 3.47 O -7.842 4.158

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