A bond has an annual modified duration of 7.140 and annual convexity of 66.200. The bonds yield-to-maturity

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A bond has an annual modified duration of 7.140 and annual convexity of 66.200. The bond’s yield-to-maturity is expected to increase by 50 basis points. The expected percentage price change is closest to:

A. −3.40%.

B. −3.49%.

C. −3.57%.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 08, 2023 03:41 AM

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A bond has an annual modified duration of 7.140 and annual convexity of 66.200. The bonds yield-to-maturity

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Fixed Income Analysis

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