A 9%, 16-Year Bond Has a Yield to Maturity of 11

question 7

Multiple Choice

A 9%, 16-year bond has a yield to maturity of 11% and duration of 9.25 years. If the market yield changes by 32 basis points, how much change will there be in the bond's price?

• A) 1.85%
• B) 2.01%
• C) 2.67%
• D) 6.44%

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