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Question
Consider a six-year maturity, $100,000 face value bond that pays a 5 percent fixed coupon annually.
What is the percentage price change for the bond if interest rates decline 50 basis points from the original 5 percent?
A. -2.106 percent.
B. +2.579 percent.
C. +0.000 percent.
D. +3.739 percent.
E. +2.444 percent.
Answer
This answer is hidden. It contains 128 characters.
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