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Question
A bank owns a zero coupon bond with 5 years to maturity and a face value of $10,000. If interest rates increase from 6% to 7%, what is the approximate change in price, using Macaulay's duration?a. $343
b. $352
c. -$343
d. -$352
e. not enough information is given to answer the question.
Answer
This answer is hidden. It contains 134 characters.
Related questions
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