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Question
A 20-year zero coupon bond with a face value of $1,000 is currently selling for $214.55. Using the bond's modified duration, what is the approximate change in the price of the bond if interest rates rise by 25 basis points?a. -49.63%
b. -46.39%
c. -4.96%
d. -4.63%
e. Not enough information is given to answer the question.
Answer
This answer is hidden. It contains 226 characters.
Related questions
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