A Bond Has an Annual Modified Duration of 7

question 27

Multiple Choice

a bond has an annual modified duration of 7.020 and annual convexity of 65.180. if the bond's yield-to-maturity decreases by 25 basis points, the expected percentage price Change is closest to:

• A) 1.73%.
• B) 1.76%.
• C) 1.78%.

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