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Business, 06.07.2021 15:40 natalie2sheffield
A bond has a duration of 2.83 years and the current price of the bond is $973.76. Calculate the expected price change if interest rates drop to 6.75% using the duration approximation. Assume that all current market interest rates are 7%. [Hint: Dollar change in bond price is (the percentage change in bond price) x (the current bond price).] Group of answer choices
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A bond has a duration of 2.83 years and the current price of the bond is $973.76. Calculate the expe...
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