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Question
Consider a five-year, 8 percent annual coupon bond selling at par of $1,000.
If interest rates increase by 20 basis points, what is the approximate change in the market price using the duration approximation?
A. -$7.985
B. -$7.941
C. -$3.990
D. +$3.990
E. +$7.949
Answer
This answer is hidden. It contains 44 characters.
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