Consider a Bond with a Duration of 7 Years Having

question 85

Multiple Choice

Consider a bond with a duration of 7 years having a yield to maturity of 7% and interest rates are expected to rise by 50 basis points. What is the percentage change in the price of the bond?

• A)3.62%
• B)3.45%
• C)-3.38%
• D)3.38%
• E)-3.62%

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